Every consumer is in a different place when it comes to financial progress, and most likely does not measure their progress in the same way.
BOSTON (PRWEB) March 28, 2019
There are a number of ways that consumers can measure their progress towards financial independence. Reaching financial independence can be seen as reaching an important goal, such as paying off debt, building an emergency fund or contributing to a retirement fund. To help consumers asses their progress, national nonprofit American Consumer Credit Counseling explains several different achievements to consider that contribute to financial success.
“Every consumer is in a different place when it comes to financial progress, and most likely does not measure their progress in the same way,” said Steve Trumble, President and CEO of American Consumer Credit Counseling. “Although it is different for everyone, it is important for consumers to have a way that works best for them when measuring their progress and know where they stand.”
According to NerdWallet’s annual U.S. household debt analysis, credit card balances from month to month continued to rise in 2018 and hit $420.22 billion by the end of the year, a five percent increase from the previous year. The average credit card debt per household is about $6,929. Credit card debt is only a small portion of debt held by consumers. The analysis found that the average amount of total outstanding household debt is about $135,768, which includes mortgage.
American Consumer Credit Counseling discusses how consumers can measure their financial progress.
1. Income – Some consumers measure their financial progress based on an increase in income each year. An increase in income, whether it be a raise in salary or money from a side business, makes consumers feel as though they are moving closer towards financial independence.
2. Net Worth – Net worth is the total value of a consumer’s assets once their liabilities, such as debt, have been taken out. Reducing liabilities and increasing assets is a good way to increase your net worth and see results.
3. Emergency Fund – Creating an emergency fund and continuing to add to it contributes to financial progress. Reaching a goal of three months’ worth of expenses saved is a good milestone to work towards.
4. Debt – Being in debt is discouraging, so reducing that debt by paying it off leads to a sense of accomplishment. Consumers should focus on paying off each type of debt they have and check it off the list as they progress towards financial independence.
5. Retirement – Continuing to contribute towards retirement and reach a certain monetary goal can give consumers a good idea of where they are financially.
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling and student loan counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at http://www.ConsumerCredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt management, bankruptcy counseling, housing counseling, student loan counseling and financial education concerning debt solutions. To help consumers reach their goal of debt relief, ACCC provides a range of free consumer personal finance resources on a variety of topics including budgeting, credit and debt management, student loan assistance, youth and money, homeownership, identity theft, senior living, and retirement. Consumers can use ACCC’s worksheets, videos, calculators, and blog articles to make the best possible decisions regarding their financial future. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). For more information or to access free financial education resources, log on to ConsumerCredit.com or visit http://www.consumercredit.com/financial-education.aspx