Learning finance

Credit counselors see interest rise as inflation remains high

BISMARCK, ND (KFYR) — Inflation is still above eight percent, according to the Bureau of Labor Statistics. In the financial world, it’s sometimes called “the silent killer,” because people don’t really notice it until the end of the month, when the bills are paid and suddenly there’s less money left. silver. For this reason, many are now seeking financial advice to help them manage their money. Janelle Engelsrude says making sure certain payments are covered each month is key.

“By making sure you have a roof over your head, utilities are paid for, if you have secured loan payments, whether it’s a mortgage or a car loan, you want to make sure those priorities get paid first,” said Janelle Engelsrude, a financial adviser at The Village Family Services.

According to Engelsrude, of the clients they have, almost 75% have sought financial advice to stretch their budget. Some choose to turn to credit cards to make ends meet.

“Well, the problem with that is that if inflation doesn’t moderate, which it doesn’t, next month is always next month is always next month. Then what happens is “is that we’re now paying 20-30% interest on the credit card balance we manage, which only compounds our problem,” said David Wald, financial adviser at Securian Financial.

Payday loans are also an option for those who don’t want to incur credit card debt, but there are many concerns with this method.

“I would say you really have to research the terms and conditions, especially the interest rates on these payday loans. If you even have any questions or doubts, I would tell you to follow your instincts,” added Englesrude.

Another option is to create an additional income stream. Wald says that while another job can be intimidating for people, most employers need help and are willing to accommodate your schedule.

Whether you find yourself cutting your morning coffee break or taking a shift or two at a new job, Wald says to keep in mind that these are temporary measures and better times lie ahead. Engelsrude and Wald both said that budgeting will help you take an objective look at your financial situation, and they say giving up a little in the short term can help your financial health in the long run.