Animal Health Solutions

12 Covetrus | ph: 855.724.3461 | fx: 888.329.3861 | northamerica.covetrus.com Nearly 75 percent of Americans currently carry some kind of debt 1 , whether it be through credit cards, car loans, mortgages, etc. With saving and spending patterns varying greatly from generation to generation, it may be difficult to understand how debt affects your financial health, and if you're carrying too much. Here are four signs to look for: A You've maxed out all your credit cards. S You have loans with multiple lenders. D You're only able to make minimum payments. F You've lost track of what expenses you're paying each month. You might be surprised to hear that one of the best things you can do to get out of revolving debt like this it to take out a loan. Here are the ways it can help: Simplify your payments Taking out a loan simplifies all your bills into one monthly payment. Often, a debt consolidation loan will mean lower monthly payments for you, so you're not just covering all your expenses, you're freeing up cash flow for other uses or to invest towards your future. Take control of your finances Consolidating your debt with a fixed rate loan puts the power back in your hands. Not only can you control what date your monthly payment comes out of your account, you don't have to worry about your interest increasing without warning. This consistency allows you to start making strides toward financial stability by being able to plan around a consistent payment and set amount of cash flow each month. Increase your credit score Paying off outstanding balances with a loan may improve your credit score. This strengthens your financial profile and puts you in a more advantageous position should you choose to seek out loans in the future, whether for personal or professional reasons. Improve your DTI Your debt-to-income (DTI) ratio is calculated by dividing the amount you owe by the amount you earn before taxes, withholdings, etc. For example, if your monthly debt payments are $2,000, and your monthly income is $5,000, your DTI is 40 percent. Ideally, your DTI should be below around 30 percent. Consolidating your debt with a lower monthly payment improves your DTI, which impacts your overall financial health. Having a stronger financial profile sets you up to take advantage of better financial opportunities in the future. signs you're carrying too much debt–and how to fix it By Chris Panebianco, CMO at Bankers Healthcare Group 1. Northwestern Mutual 2020 Planning & Progress Study If you're feeling caught in the revolving debt cycle, it's time to consider a debt consolidation loan from BHG. Learn more by visiting covetrus.bhgchoice.com.

• Cover