Some of the most common New Year’s resolutions involve improving one’s health or cutting out bad habits. Some of us want to improve our financial health and paying off debt in the New Year is a common resolution. By taking the right approach and building good financial habits, you can pay down debt in the New Year.
Here are some tips to help you keep your New Year’s debt resolutions:
- Know exactly how much you owe. Create an inventory of all your debts. This should include all totals and interest rates. Add these up and see exactly how much you have to pay down.
- Break it up into smaller tasks. Focus on the steps you need to take day-to-day to achieve paying off your debt. Figure out how much you can put toward your debt each month by doing a detailed budget. Trim expenses, which will allot you more money to pay off your debt. If you go out to eat four nights a week, see what you would save by cutting it down to just one or two nights a week.
- Choose how you will pay off your debt. Consider using the debt snowball method, where you pay off smaller debts first to secure early victories and momentum that will keep you motivated to pay off bigger debts.
- Make the most of every dollar. Building a budget is key to any financial plan, but it is absolutely essential when paying off debt. Select a budget that allows you to still live comfortably, while not feeling deprived.
- Side hustle. Whether it is freelancing, selling old clothes through consignment, or being an Uber driver, there are a number of ways you can increase your income while still keeping your day job. Here are 26 legitimate side hustles to consider. This additional income can go towards paying off your debt, without having to drastically adjust your lifestyle.
- Stay focused and hold yourself accountable. Track your progress and consider using a debt reduction app to help you solidify your new habits and stay on track.
If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.