At Sunshine Capital, we strive to always provide services with honesty, trust, and integrity. We work directly with each client to identify their financial needs, and then create a road map to help them reach those goals. We want to help our clients build up the skills they need for long-term financial success. Our financial coaches will work with on helping you develop those skills so that you can achieve financial freedom.
The Problem
Consumer debt is growing
As of October 2018, U.S. credit card debt totaled $1.037 trillion (yes, with a T), increasing 10.7% from the previous year and surpassing the record of $1.02 trillion set in 2008. source
Interest payments are stealing your savings
Americans paid $104 billion in credit card interest between August 2017 and August 2018. How much did you pay?
Debt is getting more expensive
The majority of credit card contracts have variable interest rates tied to the prime rate. This means that your interest rates go up when the Federal Reserve hikes the rates. (This already happened 4 times in 2018 and is expected to continuing rising.) Do you have a plan for your credit cards if your rates increase?
The future of the economy doesn’t look too hot
The Fed released their “Credit Access Survey” in December 2018 and it surfaced a couple alarming trends: Both credit-card rejection rates and involuntary account closure are on the rise. One explanation for this is that credit-card issuers may see a darkening economic cloud and want to get ahead of the trend.
In addition, the U.S. Treasury yield curve just inverted for the first time since 2007. What the heck is the yield curve, right? Simply put – it’s the difference between yields (returns) on two different bonds that have the same quality but different maturity dates. Every single time the U.S. Treasury yield curves have gone negative a recession has followed soon after. Like clockwork. Even scarier? There’s never been a false positive.