Debt Reduction Planning

Debt reduction planning is a process of creating a strategy to pay off your debts in an efficient and manageable way.

Plan For Your Goals Service Areas

  • Creating a total debt payoff plan
  • Federal student loan debt analysis and planning, including consolidation, IDR, PSLF, etc.
  • HELOC analysis
  • Home mortgage refinance analysis
  • Intra-family loan planning
  • Mortgage comparison/analysis when buying a home
  • Refinancing credit card debt
  • Refinancing student loan debt
  • Reverse mortgage analysis

How Can I Benefit From Debt Reduction Planning?

It can help you save money on interest, lower your monthly payments, and improve your credit score. There are different methods of debt reduction planning, such as the highest interest rate method and the snowball method. You can also use a debt-reduction spreadsheet to track your progress and see how much you can save by following a plan.

How Will Plan For Your Goals Help Me Manage and Reduce/EliminateMy Debt?

David can help you with debt management and reduction/elimination by creating a plan for getting your debt under control, analyzing and restructuring your debts, and providing other financial services.

Some of the steps that he will help you with are:

  • Listing all your debts and interest rates.
  • Creating a budget to control your spending and figure out where you can find more money to put toward your debt.
  • Prioritizing the debts with the highest interest rates or delinquent accounts first and then working down the list.
  • Considering options like debt consolidation and working with other financial professionals.
  • Saving money for emergencies and future goals.
  • Plan For Your Goals can also help you with other aspects of your financial situation, such as investment advice, income tax preparation, and estate planning.

What is the Difference Between the Highest Interest Rate Method and the Snowball Method

The difference between the highest interest rate method and the snowball method is the order in which you pay off your debts. With the highest interest rate method, also known as the debt avalanche method, you pay off the debt with the highest interest rate first, regardless of the balance. This can help you save money on interest in the long run, but it may take longer to see progress. With the snowball method, you pay off the debt with the lowest balance first, regardless of the interest rate. This can help you eliminate debts faster and feel more motivated, but it may cost you more in interest over time.

Both methods require you to make minimum payments on all your other debts and apply any extra money to the debt you are focusing on. The best method for you depends on your personal preference and financial situation.

Do I Need to Be Debt-Free?

Being debt-free is not a requirement for everyone, but it can have many benefits for your financial and personal well-being. Some of the benefits of being debt-free are:

  • You have more of your income available to you. You can use it to save, invest, or spend as you wish, without worrying about paying interest or fees to creditors.
  • You have less financial risk. You don’t have to worry about defaulting, dealing with collections agencies, or damaging your credit score if you face financial hardship or job loss.
  • You have improved credit score. Paying off your debts on time and in full can boost your credit score, which can help you qualify for better rates and terms on future loans or credit cards.
  • You can retire earlier. Being debt-free can help you save more for retirement and reduce your expenses in retirement. You can also enjoy more freedom and flexibility in how you spend your retirement years.
  • You have more peace of mind and happiness. Being debt-free can reduce your stress, anxiety, and depression levels. It can also improve your relationships, health, and self-esteem.

Being debt-free can also help you achieve other goals, such as traveling, starting a business, or pursuing a passion project. However, being debt-free is not always easy or possible for everyone. Some people may have strategic debt, such as a mortgage or student loans, that can help them build wealth or invest in their future. Some people may also face challenges or barriers that make it difficult to pay off their debts quickly or completely. The decision to be debt-free depends on your personal preference and financial situation. You should weigh the pros and cons of being debt-free and make a plan that works for you.

Simple Path to Improve Your Financial Condition

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Step 1:

Select a Consultation Service

My services are designed to be flexible and meet your needs. Whether you're looking for a basic evaluation, help with a key area of your finances, or comprehensive financial planning, you'll find it here.

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Step 2:

Understand Your Real Financial Condition

Working together we will determine your financial needs. We’ll assess what is effective or problematic, and what is hindering your progress. With a clear understanding of your financial condition, you can make smarter choices.

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Step 3:

Plan a Better Future

Getting the knowledge and guidance you need from a financial professional is an investment in your security and hope for the future. And it’s not just for you, but for the people who depend on you.

David Roberts - Financial Planner and Advisor of Plan For Your Goals

David Roberts, Owner: Plan For Your Goals

You Deserve a Better Future

Affordable financial advice with flexible options that fit into your tight schedule can be difficult to find. That's why so many people struggle to make smart money decisions. At Plan For Your Goals my clients get the financial planning, coaching, and resources they need to make better decisions and plan a better future.