Understanding Debt Management

credit card and ben in the old back pocketAs a modern consumer, you need credit. When you were growing up, you may have heard your parents or grandparents say, “If you can’t pay for it with cash, then you can’t afford to buy it.” That may have been sound advice 40 or even 20 years ago, but such attitudes about credit are outdated and unrealistic for most adults working and living in modern times. The average cost of a car, house, or college education has skyrocketed when compared to the average household income, so typical consumers need to borrow money if they want to buy a home, drive a car, or educate themselves or their children. Throw in a handful of charge accounts and credit cards, and it is no wonder that the average consumer is carrying more debt than ever before. With greater credit needs comes a greater need for debt management.

Good debt management ensures that you will:

  • Have credit when you need it
  • Make wise borrowing decisions
  • Avoid disaster if you become overextended

You can ensure that loans are available when you need them by establishing and maintaining a positive credit record. You can benefit from many specialized loan programs if you are aware of your borrowing options. You can save money by taking steps to reduce the cost of debt and save yourself from disaster if you know what to do when you can no longer meet your financial obligations.

How proactive are you in managing your debt? What more could you do?

If you would like a quick review of your liabilities, or an introduction to a trusted financial resource, click here to contact us.

About Trevor Hammond

Since 1998, Trevor Hammond has helped thousands of families finance their homes and make smart decisions when it comes to their personal finances. Now, as a sought-after mortgage advisor, coach, speaker, and author, Trevor Hammond continues to focus on helping people enjoy more money, less stress, and more life. As the co-author of Borrow Smart, Repay Smart and his 2018 follow up book, Mortgages, Money and Life, Trevor has created unique financial coaching programs and spoken in front of thousands of people on his book concepts ranging from improving cash flow and savings, managing liabilities, to advanced real estate financing strategies for homeowners. His passion for providing financial education and his ability to innovate unique processes that help both clients and originators excel, has led Trevor to become a top producer and build a #1 branch in the country for mortgage lending company Sierra Pacific Mortgage. Whether Trevor is speaking to hundreds of people from the stage, working on his next book or mentoring a Loan Officer one-on-one as a High Trust™ Leader, he is pursuing his greatest passion of all: Coaching.
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