4 reasons a Debt Care™ plan is just as important as a health care plan

When was the last time you went to your doctor for a routine physical? How about the last time you spoke with your therapist? Even if your memory is a bit hazy about your last appointment, you know deep down that taking care of your physical and mental health should be a priority.  

But what about taking care of your debt?

Prioritizing debt health in the same manner as your physical and mental health, will allow you to reap long term monetary benefits. Good debt health means that you are financially fit to achieve your money goals. Poor debt health could leave your bank account feeling like it’s on life support.  

A regular gym routine or weekly sessions with a therapist can transform your body and mind. It's no different when it comes to your money. 

Here are four reasons to include good debt fitness habits into your healthy living plan. 

1. Debt check-ins help uncover hidden truths

Regular weigh-ins and health checkups can help you assess how fit your body is; your debt is no different. Good debt health starts with a realistic look at what you owe. When you know where you are now, it's easier to make a plan to get to where you want to go. 

Ask yourself these questions:

• What's your total debt load?

• How much of your debt is unsecured? For example, what do you owe to medical bills, credit cards or personal loans?

• How much of your total credit limit are you using? (Hint: this is your credit utilization, and the lower this number is, the better.)

• What's a realistic timeline to pay off what you owe?

There are no right or wrong answers. Less debt is better, but if you have more debt it's nothing to be ashamed of. It might take you longer to pay it down but it's not impossible. 

2. A Debt Care plan will help increase cash flow

Cash flow means how money moves in and out of your bank account. Positive cash flow means more cash goes in than out. Negative cash flow is the opposite. 

Positive cash flow and good debt health go together. When you have more money than you need each month to pay bills, some of the extra can go to paying down your debt. 

How do you figure out your cash flow? Simple. You make a personal budget. 

A budget is a plan for how you spend all the money that comes in each month. On one side, you have income and on the other, expenses. 

If you've struggled to make a budget or stick to one, there are apps that can help. Achieve MoLO is a free budget app that helps you manage money, pay off debt faster, and still enjoy life. 

3. Assessing financial risk will help you prepare for emergencies

Expect the unexpected. It's good to have cash set aside. Otherwise, you might have to use a credit card or a loan to cover an unplanned expense. Factor in financial emergencies. We all experience them. 

Saving money while you pay down debt is a great way to prepare. 

How do you save and pay off debt? 

Go back to your budget. Is there any amount of money you can save regularly? Even if it's only a few dollars, that's enough to get started. 

If your income goes up or you pay off a debt and eliminate a monthly payment, you could funnel more money toward your emergency fund goal. Little by little, you can prepare yourself for the rainy days that may come along. 

4. Taking action on your debt could help reduce stress

Debt stress is real and it can take a serious toll on your physical and mental health. Poor sleep, weight gain, and anxiety are just some of the side effects worries over debt can cause. 

If you experience those kinds of symptoms, you might notice them ease when you improve your debt health and fitness. 

Debt becomes less of a stressor when you:

• Know what you have to repay

• Have a balanced budget and a firm grip on cash flow

• Save regularly for emergencies

• Understand your options to manage debt

You want to get ahead financially. We all do. Debt may slow you down a little, but it's not a roadblock to your success. If you've neglected your debt health until now, it's not too late to turn things around. 

Not sure where to start? Debt Care™ by Achieve is a free resource that provides you with a clear action plan and recommendations to help you get on the right track to or maintain a good debt fitness routine.

To get your Debt Care plan, just simply take our debt health quiz to find out your personal Debt Fit Score™. This score measures your debt health based on the state of your unsecured debts, cash flow, your financial risk profile, and your money goals.

Take the Debt Fit™ quiz now to see how financially fit you are right now.