At the start of each new year, countless people resolve to get in better shape. They diet, join the gym and do whatever else it takes to meet their goals. More and more people are realizing the importance of good financial health as well. A study conducted by Fidelity found that 54 percent of Americans are considering financial resolutions this year; a nearly 20 percent increase from 2009. Here are a few tips to help our readers in Lane County get out of debt, a common New Year’s resolution.
Star by making a budget to find out where you can cut costs. Be sure to include all of your expenses, no matter how trivial they may seem. For example, taking your lunch to work instead of eating out can save upwards of $7 each day. Many people overestimate their discretionary income until they make a detailed budget. Once you have established a budget, you can set goals that are attainable. If paying off credit card debt is your goal, you may want to start with the card that has the lowest balance. You can then build upon that success and start paying down other outstanding credit card balances. You may also want to consider consolidating credit card debt to get lower interest rates and make payments more manageable.
Even after making a budget, some people may still be faced with more expenses than they can afford to pay each month. If you find yourself in this situation, don’t despair. Legal help is available. Chapter 7 bankruptcy can help those who are struggling with debt find a fresh financial start.
Source: U.S. News & World Report, “New Year's Resolutions That Will Save You Money in 2014,” Harriet Edleson, Dec. 26, 2013.