As we enter into the New Year, some of us are probably burnt out from all the holiday spending and are now beginning to worry about last year’s debt coming back to haunt us. Now is the time to start the New Year off on the right foot by taking the initiative to create a debt management plan. Having a clear and realistic plan in place early on can make your life easier and give you peace of mind for the rest of the year.
Start the New Year with these simple financial tips:
- Know your debts – Face your debts head on by evaluating what you owe, including all of your credit card debts, student loans, medical bills, and other unpaid invoices. Organize your debts and know what the interest rates are by utilizing spreadsheets, financial software, or other tools that you find easy to use.
- Start paying off your loans/debt – Dedicate a realistic portion of your income to paying off your loans and debts. It is usually a good idea to start paying off your debts with the highest interests, but you may also choose to eliminate debts with smarter balances to build momentum. How you prioritize your debts is up to you and depends on your financial goals.
- Set a budget – Focus on spending within your means. Take the time to reassess your income, your spending, and your debts. Eliminate unnecessary expenses to help you get back on track so you can start building up an emergency safety fund. Sometimes it may mean living the “poor lifestyle” for a little while until you are back in the black.
- Stick to your budget - The key is to have a clear budget and to make sure that you stick closely to your budget. Don’t be tempted to splurge or stray from your original plan, otherwise this can derail your finances and put you in a tighter spot throughout the year.
We know that budgeting can be a challenge, especially when finances are extremely tight in your household. With a little motivation, discipline, and smart planning at the beginning of the year, we believe that you can be closer to your financial goals!
If you are currently facing financial challenges or are overwhelmed with debt, feel free to contact our Rancho Cucamonga bankruptcy attorney at Nguyen Law Group. We can provide effective and affordable debt relief solutions so you can feel confident about your financial future. Call today: (909) 328-6280.
