By Jennifer Griffin, AFC® Candidate, FINRA Foundation Military Spouse Fellow
I looked at a piece of paper that caused me to question everything I know about money. What is it that showed just how much of my money was not being spent on saving or investing? It was my credit card statement.
For months, I had been trying to save money, and it just wasn’t working out. Of course I had this credit card to pay. If I just pay enough every month, it will help reduce my balance, right?
I looked at my credit card statement, and it stated that within the previous 12 months I had paid more than $1,000 in interest! That was nearly 20 percent of my debt balance at the time.
While paying the minimum amount required is easy, it may not be your best option. The longer you take to pay off your debt, the more you’ll pay in added interest.
This is why it is so important to learn how credit works and understand your own credit history: any debts you have acquired with a fixed or revolving debt balance, debt details, and associated payment history. You can learn more about your credit history by reviewing your credit report.
Below are important considerations when understanding your credit:
Developing a personal awareness regarding how you use credit and educating yourself on how it impacts your financial health are powerful steps toward building a road map to reach your financial goals.
Let Military Saves help you save money so you can feel confident about your finances. It all starts when you make a commitment to yourself to save. Take the first step today and take the Military Saves pledge to save money, reduce debt, and build wealth over time. And it doesn't stop there. Military Saves will keep you motivated with information, advice, tips, and reminders to help you reach your goal. Think of us as your own personal support system.