The New Year is fast approaching and this can be a great time to reflect
on the past 12 months as well as to create new goals for the future. If
your resolutions include becoming debt free, the tips below may help you
to stay on track and avoid racking up any new debt.
Re-evaluate your budget: Perhaps the most important component to a debt-free lifestyle is the
creation and periodic evaluation of a detailed budget. If you have never
made a budget, a quick google search will turn up numerous free resources.
Look for any areas where you may be overspending or expenses that can
be cut entirely. For example, frequent restaurant visits can quickly add
up. Additionally, don’t be afraid to reevaluate your budget when
new expenses come up.
Curb holiday spending: It is no secret that the holidays are here and with them comes one of
the busiest shopping seasons of the year. If you’re going to spend
on gifts, food, or travel, be sure that they fit into your budget. For
more tips on holiday spending, during this or any year,
check out our blog post on the topic.
Open a savings account: Have you thought about your budget? Don’t forget to include savings.
If you have looked into a dedicated savings account before, you may have
run into suggestions such as putting away around 10% of your income. In
truth, any amount that you can save is helpful and if you can only put
away a couple dollars here and there, that is a great start. If an emergency
occurs, any financial padding can help to prevent or reduce your need
for credit or loans.
Consider options for building credit: It is understandable that you may be hesitant to open up or use a line
of credit, especially when that behavior is what got you into trouble
in the first place. However, being selective with credit cards and financial
commitments can allow for a degree of flexibility while building your
credit. Just remember to never take on more financial responsibility than
will fit within your budget.
Don’t get discouraged: Debt management is not a one-time deal, but an ongoing process. If you
fall into a bad habit or find yourself getting off track, take a deep
breath and focus on your goal. Setbacks are often a part of life, but
the important thing is to keep moving forward. Consider seeking help for
debt management or ask a friend or family member to keep you accountable.
If you feel as though you have tried everything and simply cannot get ahead
of your payments, it may be time to consider bankruptcy. This decision
has the power to affect your finances for years to come and should only
be made after carefully considering all of your options.
When you are ready to take the next steps, contact the Maida Law Firm,
P.C. The firm’s
Beaumont bankruptcy attorneys possess over 40 years of combined experience. Additionally, Attorney Frank
J. Maida is Board Certified in Consumer Bankruptcy Law by the Texas Board
of Legal Specialization, an achievement shared by only a small percent
Call Toll-Free (409) 234-1490 or
request your initial case evaluation online and speak to a knowledgeable attorney about your financial situation.