Some of the most common New Year’s resolutions involve improving one’s physical health through diet and exercise, cutting out bad habits, and losing weight. Other popular New Year’s resolutions involve improving one’s financial health, getting finances in order, and eliminating debt.
The unexpected turn of events caused by the pandemic have been far-reaching. Job loss, medical expenses, the inability to pay bills, rent, and credit card debt are at the forefront of concerns for many South Florida residents.
For those dealing with concerns about their financial situation and are worried about foreclosure and repossession, there are options available including bankruptcy. When you gain control over your debt, you gain control over your life.
Here are some tips to help you keep your New Year’s debt resolutions in 2021:
- 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 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 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 ways you can increase your income while keeping your day job. This additional income can go towards paying off your debt, without having to drastically adjust your lifestyle.
- Consider filing for bankruptcy. When debt spirals out of control, filing for bankruptcy is sometimes the only way to get out of debt and serious financial problems. It can be used as a financial tool to help hold onto valuable assets, such as your home and retirement savings. Filing for bankruptcy can protect you from lawsuits, wage garnishment, and even auto and home repossession. Bankruptcy also puts an end to creditor harassment. Upon filing for bankruptcy, the debt collectors can no longer contact you by phone, mail, or email. An experienced bankruptcy attorney can assess your financial situation and determine if bankruptcy is right for you.
Get a fresh financial start in the New Year! 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.