Getting Rid of Debt – It’s in the details.
Sometimes debt is a necessary evil. Whether it’s paying for school, buying a car, or purchasing a home, most of us will have to borrow money in our lifetime.
When appropriately managed, debt can help us get to where we want to go. When we don’t take control of our debt, we run the risk of losing assets and getting into serious financial trouble. Debt elimination should be a primary goal for any CRNA who wants to establish their financial security.
If you’re just starting out as a Nurse Anesthetist, then you’ll probably want to mitigate debt while also making investments to position you for financial growth and security. If you’re a CRNA at the end of your career, then you’ll want to know how to stay debt-free while also utilizing your assets so you can continue to live your life in the comfort that you’ve earned.
Whether you’re a new or seasoned Nurse Anesthetist, achieving financial freedom requires a strategy that grows your assets and minimizes debt, all at the same time.
For most CRNAs, debt management is often the most significant challenge. To get rid of debt, you need to understand it.
Debt is far more complicated than merely adding interest to the money you owe. Amortization schedules, compound interest, and loan-type must be factored into your plan to take on debt and to pay it off.
More importantly, knowing the actual amount of interest you’ll pay on each loan will give you essential insights that help develop a strategy to reduce debt.
Contrary to popular belief, your loan interest rate is not a clear indication of the actual amount of money you’ll owe to a lender.
For example, let’s say you’re a lucky CRNA with no student loans, and you’re ready to buy a house. You take out a $150,000 mortgage with an amortization period of 25 years and a fixed interest rate of 3%. Your monthly payments on the house are $711.
It seems like a great deal, right? Not so fast…
Your monthly payments are relatively low, and you know that you will owe your house in full within 25 years. However, this information does not give us the actual compound interest that this mortgage creates. In other words, we don’t know how much money this $150,000 house will cost in the long run.
Our partners at Debt Free 4 Life have created a simple tool to help you answer this very pressing question. When you input your data into the Debt Free 4 Life calculator, it will tell you how much your debt actually costs.
Let’s use our mortgage example to see how it works:
By inputting our mortgage details into the Debt Free 4 Life calculator, we see that 52.74% of the monthly payment will go towards interest for this payment. This calculation shows that only half of my money is really going towards paying down my initial $150,000 debt.
So, this $150,000 debt actually costs $229,1100 in total over the life of the mortgage. That’s almost $80,000 in interest alone—not such a great deal after all.
When it comes to debt, we always owe more than we realize.
Fortunately, there is a way to improve our debt-knowledge so we can live debt-free.
The Debt Free 4 Life Calculator will give you much-needed clarity to fully understand the financial implications of the debt you have or the debt you may want to take on. Once you fully grasp the dollar-for-dollar value of what you owe, you can devise a strategy to tackle that debt and gain financial freedom.
Better still, using this calculator will give you access to a free consultation with an advisor at CRNA Retirement Planning.
Together, we’ll review your report and develop a plan to pay off your debt faster so you can save money and achieve financial freedom sooner.
Get access to the Debt Free 4 Life Calculator. It’s time to plan for a debt-free life.