Some of the most common New Year’s resolutions involve losing weight, improving one’s health, learning a new skill or hobby, and getting organized. Another common New Year’s resolution is paying down debt and improving one’s financial health, whether that means creating and sticking to a budget or getting out of debt completely.
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 must 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 putting together a detailed budget.
- 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 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 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.
- Eliminate debt in the New Year. If your debt has become unmanageable, here are five signs it is time to file for bankruptcy. Waiting to file for bankruptcy increases your risk of wage garnishment, lawsuits, auto repossession, and foreclosure. With the New Year right around the corner, there are many reasons to consider January as a time to get a fresh start with your finances and say goodbye to debt once and for all.
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.