The 2 Key Considerations To Help Successfully Deal With Your Debt
Debt and our ability to successfully handle this both financially and emotionally is a serious topic that touches most of our lives. When confronting this issue, there are a number of important considerations to make, but here are the two key issues it’s crucial you address from the outset and make sure you are considering and integrating.
#1: EMOTIONAL SENSITIVITY
Emotional sensitivity is how you feel about the debt.
#2: FINANCIAL SENSIBILITY
Financial sensibility is the true impact to your wealth.
Many of my clients, being specialists, have a significant amount of school loan debt. It is critical that you take a side-by-side approach and evaluate the different options that exist for you, and then integrate those financially impactful illustrations into your emotional sensitivity component.
Perhaps your school loan is at 6.8%, maybe it’s at 5%, and maybe it’s 2%. The question is could we do better over a 20 or 30 year timeframe with those extra monies that you would otherwise utilize to pay down that school loan more quickly? Additionally, are you provided with additional flexibility by not paying those dollars aggressively?
There isn’t a right or a wrong, there simply is a “Let’s make sure that we’re evaluating all of the options available to us to make sure that you make the best decision where you have the most comfort.”
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