A Worthwhile New Year’s Resolution: Paying Off Holiday Debt

Brandpoint (BPT)

(BPT) – Did you enter the new year with holiday debt? You’re not alone.

The holidays bring out some of the best in humanity every year as consumers celebrate the season with generous gifts, expensive travel and festive parties. With these luxuries also come enormous pressures and holiday expenses that can often force families into unnecessary financial debt.

More than 35% of American consumers took on holiday debt this season, as borrowers owe an average of $1,249 on their holiday gifts. That spending contributed to revolving credit balances — consisting mostly of credit card debt — climbing $19.8 billion to $1.04 trillion, which is especially concerning for the 29% of shoppers (more than 35 million people) who are still paying off credit card debt from the 2020 season.

Carrying debt into the new year can weigh heavily on your financial and mental health. Here are a few ways consumers can eliminate debt in the upcoming year:

1. Know what your money is doing.

In a world of autopay, mobile orders and online shopping, it’s easy to mindlessly spend money. A recent survey found that 65% of Americans don’t know how much money they spent last month.

What most don’t realize is when you track your money, you control it. This kind of financial discipline and organization enables you to pay off debts more efficiently and manage your spending by category. The knowledge of where each dollar in your account goes can create more opportunities to save and plan for a debt-free life.

2. Set attainable goals and create plans to achieve them.

To pay off debts on time, it is critically important to set goals that are SMART (specific, measurable, actionable, reasonable and timely). Committing to being consistent with debt repayment over a long period of time may seem overwhelming at first, but it’s usually the first step that is the hardest. In today’s connected world, there are now countless options available to assist you on your journey to financial freedom.

Quility Insurance is significantly shortening the debt repayment cycle for many Americans through its Debt Free Life® program, which eliminates debt using the cash value of a specialized whole life insurance policy. By redirecting inefficient funds, such as overpayments to debts or contributions to underperforming savings vehicles, into a policy that will accrue guaranteed interest and annual dividends, individuals can build the cash value of the policy to begin paying off the principal balance of their debts.

Using Quility’s exclusive software, a certified Debt Free Life consultant will show you how to fund an asset (instead of a liability) that will pay off your debts faster and reduce interest owed to banks and lenders. You will get a personalized debt elimination report illustrating exactly how the program will work for you, when you will be debt free, and how much scheduled interest you will save. Debt Free Life has saved families thousands on average in scheduled interest — money that can quickly and easily go back into your pocket to eliminate this year’s holiday debt.

3. Get expert guidance.

A 2019 survey found that 75% of Americans have no financial plans in place and manage their finances on their own. Without the guidance and expertise of an advisor, it can be difficult to develop a holistic financial plan that is designed to help you reach present and future goals.

Almost anything in life that is difficult to achieve requires a coach or mentor — and financial planning is no different. Working with a certified Debt Free Life consultant is a foolproof way to ensure that every dollar has a job and it is working throughout each stage of the financial lifecycle to help you achieve your ultimate goal: freedom from debt.

Now that you’ve made your loved ones feel recognized and special during the holidays, consider the new year as a fresh opportunity to connect with a certified Debt Free Life consultant and take a serious look at your financial future to make sure you are on the right path.

Quility’s Debt Free Life program helps put money back into the hands of the consumer. Start your journey to financial freedom today by visiting https://quility.com/debt-free-life/.