3 Opportunities to Seize, 4 Steps to Take
By Darpan Adhyapak, SVP
Are you navigating a crowded mall with an armload of brightly wrapped boxes? Or clicking away, shopping online? Either way, one thing is certain: This time of year, the extra debt does not bring tidings of comfort or joy.
However, this year in particular—and looking ahead into 2020—people have a unique opportunity to take new control over their debts. For the third time, the Federal Reserve has lowered interest rates. They’re at historic lows. We don’t foresee them rising any time soon.
Favorable rates offer you three opportunities:
to bring down holiday debt
to consolidate your other debt
to refinance your mortgage
The long-term payoff for taking action now
But along with the holidays comes the Grinch: Debt from gift-giving can take a bite out of your savings for bigger goals, such as a college plan or retirement. In fact, all-too-many people have kept savings on a middle burner. (Or worse, in the deep freeze.) They’re simply dealing with the cost of living today.
The key right now is to find a workable balance between debt reduction and savings—so those long-term goals don’t get shortchanged.
Getting your debt in line and keeping your savings on track are two reasons to be proactive while rates are in your favor. The long-term result: You get closer to your most important goals.
Your next 4 steps for new control of your finances
Establish or revise your big goals. Have your priorities changed? Year-end is a good time to take a fresh look, going forward.
Review your debts—outstanding obligations, the number of credit cards you use, your current credit score. Are there ways to improve your score you may not know about?
Find the most favorable rates for debt consolidation or mortgage refinancing. Remember that banks can usually offer better rates than you’ll find online, especially if you have a relationship with the bank.
Look at your savings patterns to see how far they’ll take you in the future—and look for opportunities to enhance your nest egg.
One conversation can help
Those four steps may seem daunting at this busy time of year—but Webster Bank can make them easy for you. Visit your local branch for an annual financial check-up with your banker. It’s a service we offer at no charge—an organized, clear review that can give you a tighter grip on your plans.
Together, we examine your obligations, your resources, and how to achieve that careful balance of debt reduction and savings. Our objective: to keep you on an even financial keel.
People who take this step come away feeling more relieved, with a greater sense of control and confidence over their debts and their future.
Won’t that be a great way to begin your 2020?
For a Year-End Financial Check-up, please visit your Webster Bank branch or contact us.
The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. All loans are subject to the normal credit approval process.
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