Is Your New Year’s Resolution to Get Out Of Debt?
“Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.”
Are you DONE?
- Done with calls from bill collectors
- Done with high interest rates
- Done with credit card debt
- Done with running out of money before running out of month
- Done with worrying about money
- Done with debt stress and sleepless nights
As we begin a new year, everyone is thinking about making New Year’s Resolutions…a time honored tradition. Is this the year you resolve to get out of debt? If it is, you’re making a great first step towards sleeping better at night and earning interest rather than paying it.
Where do you begin?
Although it might be painful, you have to know where you stand. Start by identifying all of your debts, whether they are credit cards, lines of credit, or loans. It’s also a great idea to run your credit report to give you a look the big picture.
Now you need to make a plan to earn more, spend less, or both….
Ways to tackle your debt:
Cutting back isn’t fun, but being in debt is even less fun…
- Don’t create any new debt. That means no new loans, avoid large purchases and stop using credit cards. (Credit cards are not the culprit here, the problem is lack of willpower. If they are used correctly and paid off promptly, they can be a great tool.)
- If you carry more that one credit card, you need to determine which cards are carrying the higher interest rate and work to pay them off first.
- Also, if you have more than one card, find the one with the lowest interest rate and look into consolidating all cards into one to see if that would be a way cut the interest and save money. You may want to get rid of the rest…
- You can also contact the credit card company and work with them to renegotiate and lower your interest rates, the same can go for any other loans or lines of credit you may have.
- Never pay only the minimum payment, even if it’s only a few dollars
- A great way to whittle down your debt is to sell you “extra stuff”. We all have it, and it’s seldom used, so why not sell it and make it work for you as apply your profits towards paying down your debt.
- Cut down on spending. Watch how you spend the little amounts…eating out, buying coffees, going to movies or sporting events. These can be replaced with sack lunches, using your own coffee maker and an insulated mug, and finding free, or less expensive kinds of entertainment.
- Using common sense, set a budget you can work with and live within…
- Whenever possible, pay with cash
- Avoid impulse purchases
- Don’t finance the staples, things like groceries
“The man who never has money enough to pay his debts has too much of something else.”
-James Lendall Basford
Having the right insurance policy is a great way to keep your spending down. Insurance is a necessity in life, but if you’re aware of the discounts that are offered, you can keep your costs down. At Whitcomb Insurance we offer many great discounts to help you with just the right policy and coverage for your budget.
For all of your Insurance questions or needs, Contact Whitcomb Insurance