3. Strategically manage credit card debt.
Don’t rely too heavily on credit cards during periods of high inflation.The average American he has more than 4 credits (opens in new tab)Cards, and the US hit an all-time high of $930 billion (opens in new tab) with credit card debt.
We recommend having between 3 and 5 credit cards, depending on your credit score and how responsibly you use your cards. Anything more than that is harder to track and easier to dig yourself into. There is a possibility
There are two popular methods when tackling debt: the avalanche method and the snowball method. The avalanche method recommends tackling the highest interest debt first. This will allow you to get rid of the debt that costs you the most. This is a great option for those with high interest debt such as credit cards.
The Snowball Law recommends paying off the least outstanding debt first. Once that first debt has been paid, you will receive the money you were destined for it and then start paying off smaller debts. No matter which method you choose, keep paying off your remaining debt as you work to pay it all off. Another strategy for dealing with debt is debt consolidation. (opens in new tab)Now combine all your debts into one payment. By paying off all your debt only once a month, you can lower your interest rates and pay off your debt faster.
Now more than ever, it is important to plan ahead for the Golden Age. Even if you’re nearing retirement, you can still live the retirement you’ve always wanted by preparing for unforeseen events like inflation.
Our financial experts can help you create a comprehensive retirement plan that meets your specific goals and needs.
This article was written by and represents the views of a contributing advisor, not Kiplinger’s editorial staff.Advisor records can be viewed with the SEC (opens in new tab) or at FINRA (opens in new tab).