Everyone knows the importance of saving and investing, but how does one continue investing and setting aside savings money if you are burdened with debt?
Financial adviser Dan Danford discusses the balancing act between paying off debt while still putting money away for future financial security.
Danford, CFP®, CRSP®, MBA, also shares his 5 financial tips to pay off debt:
1. Pay at least the minimum on debt, along with contributing to any savings and investment accounts.
2. Refinance the debt if possible, especially in a low interest rate environment.
3. Establish a reserve or emergency fund.
4. Pay off smaller debts first, especially those with higher rates, in order to start having some successes with paying off debt.
5. Celebrate each victory when you pay off debt. Celebrate with positive reinforcement.