Do they work?
Conventional wisdom, in essence peer pressure, propagated by Wall Street, financial advisors, and even Uncle John can be, and often is, overwhelming. Moreover, such wisdom has not well-served the average American.
In fact, following conventional wisdom can be hazardous to your financial well-being. It leads us down the path most traveled, the path least likely to result in debt-free living and financial freedom.
Conventional strategies include:
• Refrain from accumulating more debt. Really?!? Of course it’s tough to eliminate debt if you keep adding more to the pile. Doing so results in sacrifice and, due to basic human nature, sacrifice typically doesn’t last for long. However, this is sound advice if, and only if, you have a properly designed debt-elimination plan in place.
• Increase monthly debt payments. Well, sure, you could do that. It requires sacrifice as well. Plus, might you be wasting opportunities by using your money for a single purpose? Might there be a better way that doesn’t involve sacrifice and single-use purpose for your money?
• Obtain lower interest rates on your credit cards. A good idea regardless of your debt-elimination plan. While it may save you money you might otherwise pay to a creditor, it really doesn’t help you eliminate debt in a short period of time.
• Withdraw funds from a retirement plan. How does this help? Doing so might result in income tax and penalty in the money withdrawn. Might there be a better way, one involving a pause in retirement savings so those funds can be used to eliminate debt?
• Ask creditors for debt settlements. While this may lower the amount to be repaid, it still involves your dollar performing a single task on your behalf. Might there be a wiser way to use your money?
• Engage a credit counselor. What can they offer but a rehash of the above?
Contact Vivensure for help. Our Money Architects are trained in the unconventional. Our clients typically eliminate consumer debt (e.g., credit cards, auto loans, medical bills) in two years or less, while building savings at the same time. They know how to ensure your dollar performs two jobs for you, not just one.