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Should You Use Savings to Pay Off Debt?

Financial crises! 

John is mired in a truly bad month.  He needs an emergency root canal and his transmission is slipping badly.  His landlord just decided to sell so he needs a moving company quickly and he received a pink slip yesterday when his company was purchased.  His daughter is short on tuition money for next semester and his wife just filed for divorce after running up his credit card balances to their limits of tens of thousands of dollars.

This is when John pulls out his 401k, IRA, or other savings documents…..

The quickest way for John to address the needs of today and the uncertainty of tomorrow is to dip into his investments and savings.  That’s what he thinks, but is that the best answer?

Our analysis often reveals that clients in John’s situation are best served by selling equity in real property, by negotiating a settlement on unsecured debt, and by changing spending habits, rather than by liquidating their savings and leaving themselves more vulnerable to future liabilities.  After all, John has some uncertainty in his future and needs to ensure he has financial stability once he gets through the crisis he finds himself in.

We encourage clients like John to retain savings and investments in their portfolios.  We also encourage clients to save and invest more funds by increasing disposable income.  Our professional evaluations put clients at ease, reining in a tendency to sell investments or deplete savings while in panic mode.

During this period of financial stress John should work with his financial advisor to evaluate and adjust his current investment portfolio strategy to limit his risk and protect his investment assets.  At the same time John should seek professional assistance from a trusted debt advisor to help him understand his options for reducing his existing debt.  Ideally, his financial advisor and his debt advisor will work together to protect his current investments while decreasing his debt, helping him come through his current crisis with financial confidence.

John is having a tough time right now but dipping into his savings may not be necessary and should be avoided if possible.   Working with a financial advisor to help protect his financial assets and a debt advisor to reduce his debt is John’s winning formula to emerge financially confident and ready to move on in his new yet-to-be-defined future!

PCS Debt Relief works with clients and their financial advisors.

Whether John needs consumer debt settlement, debt consolidation, credit advising, bankruptcy alternatives, credit restoration, or business debt restructuring, PCS Debt Relief has the resources available today.

Our negotiations eliminate, reduce, and/or consolidate existing debts, effectively reducing a host of stifling minimum monthly payments that preclude opportunities to invest or save for the future obligations or retirement.  These clients then return to their financial advisors to use this newfound disposable income to maximize financial prospects and achieve long-term goals.

We charge no up-front costs, no consulting fees, and no early cancellation fees.  As a full-service debt relief company, we tailor our advice to each client according to his or her particular circumstances, rather than try to fit each client into a one-model-fits-all plan like our single-service competitors.  We encourage active relationships with financial advisors.

We look forward to assisting clients with reducing their debt so more disposable income can be used to invest.  Please contact us today and let’s start your journey to financial stability!

PCS Debt Relief

About the Author:

At PCS, our programs are tailored to the client’s specific financial needs. What sets us apart from our competitors is that clients see relief, before any payment is received. Our NO UP-FRONT FEE policy ensures our client’s a 100% satisfaction guarantee. We also do not charge any monthly fees or any cancellation fees. We want the client to feel comfortable during the whole process that’s why we allow them to be part of it every step of the way.

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