WHAT'S DEBT GOT TO DO WITH IT? Season 2 Ep. 111 Money Talks with Lynn Kitchen
5 Steps to Deleverage Your Life for 50-year-olds.
Deleveraging and eliminating debt is a crucial financial tool to help 50-somethings achieve their long-term financial goals. It is the process of reducing the debt in an individual's finances. Doing so can improve their financial stability, reduce their risk of defaulting on loans, and increase their credit score. Because if that is a problem that worries you, especially if you're in your 50s and getting ready for retirement within a decade. It would be best if you did something now to heal the debt to Deleverage your life so that you can shift your energy into creating and building long-term wealth.
Understanding Deleveraging is the first step toward successfully implementing this financial tool. It is essential to know the difference between leverage and deleverage. Leverage is the use of borrowed money to invest in assets that have the potential to generate higher returns than the cost of borrowing. On the other hand, deleveraging reduces debt to decrease the risk of default and improve financial stability.
The Importance of Deleveraging in Your 50s cannot be overstated. It is a critical time in an individual's life when they prepare for retirement and need to ensure enough savings to last them a lifetime. By reducing debt and increasing savings, 50-somethings can secure their financial future and enjoy a stress-free retirement.
Key Takeaways
Understanding Deleveraging/Debt
Debt is a problem because it deflates our confidence. It diverts us from our real wealth goals because we're constantly attending to our debt problems. It takes away from our future savings. And it just plain costs us time and money. If this is a problem that you're facing, you're not alone. Look at this; the United States has a record debt load of 31 trillion. But that's not just the United States; it's a global problem; the global debt crisis is up to 300 trillion, and we can hardly even get our minds around that. Let's bring it home. The United States households reached 17 trillion this year, 2023. They say the average debt per household is about $95,000. Now, some of you may have less than that. But I'm here to help you understand this because many of you have more than that.
Deleveraging can be accomplished in a number of ways, including:
Paying off debt: This involves making extra payments towards outstanding debts, such as credit card balances, loans, and mortgages. By paying off debts faster, individuals can reduce the interest they pay overtime and improve their credit scores.
Read more: https://lynnekitchen.com/whats-debt-got-to-do-with-it/
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