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New Year, End of Your Debt

By: Michael Millington


With the end of the year coming around, there are multiple things that people look to take care of. Whether it’s your weight or that dream that you’ve been putting off all year, there is something that you’re compelled to take care of more so at the end of the year. One thing that most people look to take care is their debt, and the end of the year is one of the more popular times that people resolve to do so. Starting a new year with the inclination that you’re changing something about yourself can have a profound effect on the outcome. Here we will discuss the best ways to keep your mind towards taking care of your debt.

 

Create a New Budget

The best thing that you can do when you’re creating a plan of action is write things down. Having a budget that you can see and manipulate will give you more power over how you handle things. There is a therapeutic sense that you get when you plan things out. If you’ve been working with an older budget then you might want to revise it and start out aggressively for the new year. Putting the maximum amount of funds you can spare into snuffing out debt may leave you with less money now, but will position you for a financially stable future.

 

Lessen (Or Eliminate) Credit Card Usage

According to multiple reports, Americans racked up an average of just over $1,000 dollars in debt from this past holiday season. Many of those who have this amount or more in debt will most likely not be able to pay it off in time to avoid oncoming interest rates. In essence, you’ll be paying for your debt twice. As it stands, the more you utilize your credit cards, the more potential harm you can do to yourself with interest payments. With that said, if you use your credit cards less you will incur less interest and be able to handle debt payments easier.

 

Resolve to Work with Creditors

One of the most helpful ways to help yourself out of debt is to work with the people you owe. While it can be intimidating at first, you’ll quickly find that your creditors want to get you out of debt as much as you do. In many instances, creditors will be willing to help you out before you become a delinquent account. Instead of writing off your debt and putting your account in the hands of a debt collector, you can see what options your creditor can enact for you. Some creditors can temporarily suspend interest rates, while others can alleviate any accumulated fees on your account. Just be sure to ask before your account is lost, otherwise your creditor might not be able to help you at all.

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