You’ll Definitely Learn a Lot From This Writer’s Story About The Best Piece of Debt Advice They Just Didn’t Take
One of the most common financial struggles that people face is having and managing various kinds of debts. And with the rising costs of education, housing, and childcare, many find themselves needing to take out loans to be able to better afford these necessities. Writer Ashley Abramson and her family are no exception.
Despite their household benefiting from her husband having a well-paying job, they were still saddled up with about $100,000 in debts including their credit cards and student loans. It even came to a point when they were paying several hundred dollars a month in interest alone as they tried to make a dent on their debts. That was when a friend of their friends recommended that they get in touch with a certified financial planner (CFP).
They eventually set up a meeting with the finance expert and consulted with him at their home. They honestly laid out their situation and told him about their debt problem. Abramson remembers being quite nervous about the meeting as she expected that the planner would advise them to do something drastic like stop putting their kids through daycare or even sell their house.
In the end, though, she was surprised about what he came up with. The CFP actually told them to open two more credit card accounts on top of the ones they already have. He had some stipulations though.
Abramson’s account to be a 0% interest one while her husband keeps another one. They were also recommended to transfer all of their interest-accumulating balance to these new accounts so the couple could pay what they owe in a year.
Straying from the Plan
While Abramson and her husband actually followed through and found the best 0% interest cards on the market, they ended up not completing the plan. Their goal to pay off all their debt in 12 months didn’t pan out due to a variety of reasons like spending out of their budget and needing to pay unexpected bills.
Looking back, Abramson now realizes that she should’ve consulted with the CPF again as he could’ve given them useful advice on coming up with a strict budget. In the end, she and her husband were left with higher interest to pay off when the rates drastically rose eventually.
Fortunately, they managed to pay off a good chunk of their credit card debt after two years.
This was thanks in part to their household’s increased income and the fact that one of their kids has grown old enough to enter kindergarten and doesn’t need daycare anymore. This alone slashed $600 a month from their list of expenses.
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