A: Stress

75% of Americans live from paycheck to paycheck
So…. it should not alarm you to know that chronic stress-related disease such as,

• diabetes
• heart disease
• stroke
• cancer

comprise 75% of the nation’s healthcare spending. While economic, social, and physical factors have long been tied to the above chronic illnesses, behavior’s such as poor eating habits, tobacco, alcohol abuse, and lack of exercise are often not the primary impetus of these conditions. So how can we improve our health, reduce stress, and save a lot of cash at the same time?
I am not a financial counselor, but I am a healthcare professional, a business owner, and a social advocate for historically suppressed communities. I would like to share some facts and suggestions that may help improve health by achieving increased financial stability.

FACT

1. 183 million or 70% of Americans have credit card debt.

2. Average credit card debt per borrower is approximately $5,736.00 which has increased by 7.5% since 2015.

3. Average American household is more than $16,000 dollars in credit card debt.

4. Your home mortgage is no longer the monster of debt! The new perpetrator is student loans to the tune of 1.58 trillion dollars. 42.9% of Americans have student loans. Must be a lot of smart people out there.

5. Millennials between the ages of 18-34 are approximately $38,000 dollars in debt.
(Student loans, credit cards & mortgages)

RESOLUTIONS

1. Perform a Plasectomy (Cut up your credit cards)
Use cash as often as you are able; the use of credit cards will cost you 12-18% more due to service charges and interest on the balance due.

2. Avoid debt with high interest. Before you sign any agreement calculate how much your final cost will be when interest rates are included. For example, a $2,000.00 debt with 20% interest over 12 months will cost you $400.00 The same debt with 8% interest will cost you $160.00. Always read the fine print and know the hidden cost. Making informed decisions will help you get a better night’s sleep and avoid needless worry.

3. If you must use plastic use a debit card. (Same as cash you can’t use money that you don’t have)

4. Pay off small balances owed first then attack your larger balances. Remember smaller balances have smaller interest rates.

5. Call your credit card company (before you miss your first payment) and ask them to reduce your interest rate. Credit card companies often require that the account be current and in good standing before a reduction in interest rate is approved. A missed payment can have a negative impact on securing better interest rates and may increase your current rate as well as incur additional fees.

6. Forget about the points, it’s the interest that kills you.

7. Talk to somebody! There are many avenues to explore such as a credit counselor, financial advisor, EAP representative, or a family member who has proven financial success. Remember, there is no shame in the game of helping yourself.

References
Dave Ramsey, Federal Reserve Survey of Consumer Finances, Investopedia, Census Bureau, Moneygeek.com, U.S. Department of Education, NerdWallet.

Online simple interest calculator:
https://www.calculatorsoup.com/calculators/financial/simple-interest-calculator.php
Consumer Credit Helpline: (800) 538-1579