Pandemic Economics: How To Manage Your Debt and Spending

Americans are returning to normal spending habits for the first time since the height of the COVID-19 pandemic, but are they paying off debt as fast as they’re accumulating it?

Consumer debt has risen to $14.6 trillion in the first three months of 2021 — with student and auto loans especially high, according to recent article on Bloomberg Wealth.

In the second episode of Protecting Your Finances During COVID-19, host Karen Boothe along with bankruptcy attorney Heather Culp and retired e-commerce executive Kim Edwards discuss how the pandemic has influenced the current economic climate and how the finances of the average American has been impacted.

COVID-19 relief support from the federal government has helped many pay down some existing debt. Credit card balances have taken a dip for the second year in a row.  Many still find themselves pushing most of their loan repayment responsibilities  down the line. All the while, many industries are experiencing price hikes and limited supply.

Tune in to learn how we got here, and how to keep track of spending amidst complicated economic times.

Featured on the Podcast

Name: Heather Culp

What she does: Heather is an attorney at Essex Richards in Charlotte, North Carolina. She and her colleagues have significant experience helping North Carolinians, their businesses, and their families through their financial challenges. Heather has over 20 years of experience and has helped clients navigate the 2008 recession and rebuild.

Name: Karen Boothe

What she does: Karen is the Founder  of Engage Forward LLC. Engage Forward exists to consult and educate all clients about how to obtain sustain and maintain financially healthy lifestyles. Karen is committed to helping her clients to develop and transform into a better version of their current state.

Name: Kim Edwards

What she does: Kim, a former e-commerce executive, retired from her career early at the age of 39 and now spends her time traveling, investing, and learning. Previously, she served in executive level roles at Wayfair, Converse, and management level roles at Amazon and Walmart.

💵 Key Takeaways 💵

Top takeaways from this episode of Protecting Your Finances During COVID-19  

➔   Pay down outstanding debts. If you have money left over after paying all your monthly expenses, consider reducing any outstanding debts you may owe. 

➔   Don’t spend what you don’t have. Some Americans have been opting to pay with credit cards instead of cash during the COVID-19 pandemic. This can be great if debt is paid off right away.If neglected, it can quickly become a financial burden. Pay for expenses using the money in your bank account, or pay off your credit card right away to minimize debt. 

➔   Know your spending habits. Keep track of your finances. Plan ahead for one-off purchases. Credit card statements  can be a great tool to keep track of monthly and yearly purchases. The bottom line — know how your spending aligns with your budget.

💡 Episode Insights 💡

[1:26] Americans are borrowing more than ever: Karen summarizes key points from a recent Bloomberg article stating that American consumers hit