Wednesday, 19 Feb 2020

Pinnacle Lending Is The solution To The American Debt Crisis

Americans are drowning in debt. It’s a fact that has been confirmed by study after study. In 2018, Northwestern Mutual pegged the average personal debt at $38,000. This is higher than the annual median personal income in 2016 which the census bureau tracked at $31,099. In other words, most would have to dedicate more than a year’s labor to pay everything off. Note that it doesn’t even include home mortgages which could easily kick up the figure. It only represents car loans, student loans, personal loans, and credit card debt. Despite the grim scenario, the numbers continue to inch higher each year.

Some of these debts are due to the past recession. Despite the eventual economic recovery, many are still reeling from the loss of their homes, their retirement funds, their old jobs, and their businesses. They went into debt to fulfill their financial obligations and they keep on paying today. Other debts are due to the pressure to be more, get more, and spend more. Status is tied to things so we strive to acquire these despite their cost — a bigger house, a beefier car, a fancier vacation, a larger TV screen, a newer phone, and so on. Borrowing to chase the dream is often unsustainable. If you want to get out of debt, then you must start from within.

A Shift in Mindset

Getting into debt is not always bad. After all, it allows us to do important things today while paying for it later. We can get a home for our family right away. We can send our children to college. We can get a car in an area that has poor public transport. We might be able to invest in great opportunities to earn more. The key is to take on good debts that improve our lives and provide long-term benefits. We must also ensure that the terms are favorable so that we don’t pay more than we have to. Frivolous spending should be avoided.

Building an Emergency Fund

When we don’t have money on hand, it’s easy to whip up our credit cards and charge there. Our debt piles up without us noticing it. This won’t have to happen if there is an emergency fund stashed for sudden unexpected expenses. Medical emergencies, school expenses, utility bills, and so on can be covered in cash to avoid incurring interest. Start saving for a small emergency fund for minor expenses. Then you can focus on paying your debts. After that, you can finally build a substantial safety stash that is equal to 6-12 months of household expenses.

Attacking the Debts

The debts might be tackled in different ways. You can begin with the smallest amount to make immediate progress and get the momentum going. You may also tackle them according to the interest rate. High-interest loans will balloon if you let it, so it makes sense to settle this right away. All this assumes that you have the means to pay them back. If not, then consider getting a part-time job to supplement your income. You may also negotiate with the lender for better terms.

Getting Professional Help

Don’t worry if these sound too complicated for you. You can always get professional help to settle your financial obligations. For example, Pinnacle Lending offers debt consolidation services to assist individuals who want to get out of debt once and for all. Various debts can be rolled into one to lessen the complexity. You can avoid bankruptcy while enjoying smaller payments or reduced interest rates. You will no longer have to deal with loan collectors. Just focus on making the monthly payments until completion.

Trust only the best for your debt consolidation. The Pinnacle Lending Group is a BBB-accredited business with an A+ rating. The corporate office can be found in Las Vegas, Nevada, while satellite offices are located in Arizona and California. If you need high-quality financial services from home loans to refinancing, then call Pinnacle Lending at (702) 730-2085 for more information.