After our team has reviewed the financials for more families than we can count, a trend emerged.
Many families who want a full-time stay at home mother cannot do so NOT because of actual living expenses, but rather avoidable debt. Imagine the benefit to the next generation if my generation of millennials had not leveraged themselves with student and consumer debt!
There is Hope
But fear not there is hope. You can buy yourself out of this predicament. For some it will only be a matter of buckling down for months and others may have to formulate a multi-year plan to "retire" the matriarch from earning outside income.
In my experience around 2 years is average if one has both student and unsecured debts. This may seem monumental on the outset but we don't focus on the two years.
Instead, focus on the next month. What does it take next month to hit that target of $300 or whatever your goal is?
Avalanches Move More Than Snowballs
The debt snowball has been widely popularized by figures like Dave Ramsey who has had his following pay off millions in debt over the decades.
This strategy is helpful for consistency because it is simplistic. You pay down the smallest debt first and go up from there. It is a progression through leveling up your competence and efforts.
However, this concept was more friendly to a time when interest rates were lower and average household debt was lower.
Today with interest rates being double or more than they were a few years ago, a lot of money can be left on the table by not factoring interest rates. Possibly in the tens of thousands.
Cue the Avalanche
The avalanche doesn't look at individual debt balances. It prioritizes debts purely based on interest rates. You pay the minimum on everything else and pay down the highest interest debts FIRST.
This can shave months or possibly years off a debt paydown schedule.
While it may seem complicated or tough to predict; fear not. We can develop a plan for you to get where you need to go all mapped out for as long as it takes.
Then the matriarch of your house can graduate to a higher calling in life.
It would be tough to put a price on that.
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