While you may have put the kibosh on spending now that the largest shopping season of the year has come to an end, the gift-buying damage is already done.
If getting into a better financial situation is one of your New Year’s resolutions, you’re one of the 66% of Americans planning to make a financial resolution for 2023.
To make sure your resolution sticks, here are some ways you can create a better financial situation for yourself in the new year:
Pay off Credit Card Debt
It’s easy to have a love-hate relationship with credit cards. They are a great way to establish credit, but they also can serve as a gateway to debt.
There are a couple of methods for tackling credit card debt that requires you to continue paying the minimum on your other cards while focusing on one card to pay off first:
- The snowball method: Pay off the card with the lowest balance
- The debt avalanche: Pay off the card with the highest interest rate
The hard and fast rule to growing your savings is the 80/20 rule, which says to pay 80% toward your monthly household expenses and 20% toward savings each month. By putting money away, you’ll give yourself a nest egg to fall back on during hard times as well as savings for the future.
Make a Budget and Keep it
A good budget can keep you on track, so you might want to try a budgeting app like Personal Capital, Mint, or YNAB. Compile a list of all your household expenses and your monthly income and eliminate any costs that you don’t need. By eliminating extras, you’ll have additional cash to put toward any debt you’re trying to pay down.
Meet With a Credit Counselor
One way to set yourself on a better financial path is to make an appointment with a credit counselor. They will not only help you create a budget that’s manageable for you, but they can help you improve your financial literacy. And if you’re swimming in debt, you may qualify for enrollment in a debt management plan, so you can pay off your debt in three to five years.
Benefits of Debt Management
One monthly payment | lower interest rates | no more debt collector calls | improved credit score
Make your no-obligation - FREE - counseling appointment now