Here are 4 Frightful stats to avoid with your finances this trick or treat season!
1. One third of Americans only make the minimum payment on their credit cards each month. Making the minimum credit card payment means that you pay more interest! Carrying a high balance can also hurt your credit score because of the high utilization rate. Only use credit cards to make purchases that you can afford, and pay off your card every month. If you have to carry a balance, make sure to pay it off as quickly as possible to avoid accumulating interest.
2. 50% of Americans have less than one month’s income saved. Having money in your savings account is a huge relief in the event of a crisis such as job loss or car trouble. It is recommended that everyone should have 6 months income saved. While this may sound daunting, it’s easy to get started. Set aside a portion of each paycheck to go into savings. Placing even 5%-10% of each paycheck into savings account will add up quickly.
3. The number of adults 60+ with student loan debt has quadrupled. This statistic is mainly a result of parents over-borrowing to pay for their child’s education. Parents have fewer loan repayment options and are much closer to retirement. If parents are considering borrowing to pay for their child’s education they should consider the cost of the schools. Ultimately parents should allow their child to take on some of the debt as he or she will have more time and options to pay it off.
4. Two out of five adults with combined finances admit to financial infidelity. Having open and honest discussions about money is key to every relationship. There are many different strategies that may work for couples including combining everything or keeping everything separate. Some couples may want to join most things but have separate spending money. While all couples are different, it is important to be truthful about your spending and expectations.
For more information about how FirstOak Bank can help manage and consolidate your credit card debt and other loans, contact a FirstOak Representative.