Categorized | Finance

Start paying off last year’s debts NOW!

Getting into financial shape is one of the best ways to start off a new season, but it probably sounded a lot easier while you were in the spirit of celebration. Now that it’s time to get down to business, you’ll need to make a game plan for how to pay off those credit cards. Are you holiday purchases still haunting you? Take a look at these five tips for eliminating your credit balances faster.

1. Survey the situation. As traumatising as it may feel, the first month of the year is the perfect time to take stock of your debts. You can’t make a plan to reduce your debt until you know how much you owe, so making a list of your bills is a good starting point. You could also use this time to call lenders to see if you can re-negotiate the payment schedule on your credit card balances and mortgage rates to make it easier for you.

2. Leave the credit cards at home. This one’s simple: only buy in cash. This will make you more aware of how much money you’re spending on a daily basis, and it may even give you the push you need to start trimming your budget. It will also eliminate any opportunities you may have had to make impulse buys.

3. Try the ‘snowball’ approach. This is a way to motivate yourself while paying down your debts. When you ‘snowball’, you simply make the minimum required payment on each account each month, except for the smallest debt. On the account with the lowest balance, you’ll pay as much as you can every month until it is gone. Then, you can start with the second smallest debt, and continue in this way until all of your debt has been paid. Getting rid of a credit balance is a great feeling, so snowballing is a less stressful way to pay down debt.

4. Practice conscious spending. If you feel the urge to splurge on a particular product, don’t buy it straight away. (With your credit cards at home, you won’t be able to!) Instead, set a reminder on your digital calendar for 30 days. If you find that you still need or want the purchase when time is up, go ahead and buy it. But there’s a good chance you will have forgotten about it all together.

5. Make a plan for the next holiday season. There’s nothing worse than putting in the hard work after the holidays only to slip into old spending habits as the year wears on. To avoid finding yourself in this situation again in 12 months, think of what you wish you had done differently this time. Then, when the holidays come around again, you’ll be fully armed with a financial plan that won’t send you crashing into your debt realities next New Year.

About The Author :

I am Susan Hannan from Test4Prep; it gives 100% 650-179 Test exams. Let’s take benefit of JK0-802 Test Exams material efficiently and get guaranteed success. Check out free demo of all certifications Exam.