Tyler Barnett PR

SAN DIEGO, May 25, 2021 (Newswire.com) - The total U.S. consumer debt has grown $800 billion since the pandemic. While debt has the capacity to be an extremely positive money management tool when used correctly to create wealth, when not managed properly it often leads to financial stress, higher interest rates, bad credit, and may even set back retirement plans. Financial consultant Steve Sexton, founder and CEO of Sexton Advisory Group in San Diego, California, is helping Americans gain control of their debts with three simple debt management strategies.

1. Understand cash flow. According to Sexton, the first step in managing debt is creating a "cash flow statement" that lists out monthly income and all expenses (think mortgage payments, utilities, groceries, memberships, groceries, and anything else you regularly spend on). "If you understand cash flow, you have the ability to save and create wealth," says Sexton.
2. Look for ways to reduce. "Once you have all of your expenses itemized, look for places to either reduce payments or even eliminate them completely," says Sexton. Areas to consider are alternative cable, internet, and cell phone providers, mortgage interest reduction, and swapping out costly prepackaged foods with whole foods you can make from scratch.
3. Create a plan to pay down debt. "The final step is to list out all debts—include the payment due date, the minimum payment, the total amount owed, and the interest rate. I like to list them from smallest to largest and make my way down until they are all paid off," says Sexton. "Now you'll want to take those newfound monthly savings you've accrued from reducing and use them to pay down your debt." Steve suggests splitting the savings in three: a third goes toward debts, a third toward savings (ex: travel or emergency fund), and a third goes toward retirement.

For more information on Sexton Advisory Group, please visit https://www.sextonadvisorygroup.com/.

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Source: Sexton Advisory Group