Today we have a guest post from Ryan Jones, a contributory writer in the debt consolidation industry. He has written several articles for various financial websites. He holds his expertise in the debt industry and has made significant contribution through his various articles.
Debt problems are best solved though proper planning. So, even if you are trying to pay off your debts through debt consolidation, it is better to take some personal finance resolutions. These resolutions, if followed in the right way, can not only help you pay down your debts but also to reduce the stress of handling your expenses, debt, and life at the same time. Even if you were not able to see any meaningful outcome with regards to previous resolutions you made, this time try to take things more seriously.
Working on achieving a debt free life.
So, what are the resolutions you should take in order to obtain a debt free life, and also save money in the long run. Some of the things you will be required to do are:
1. Invest money in addition to saving money – It is important for you to invest money other than simply contributing towards the savings accounts, and the retirement savings accounts. If you do this, you will be left with only little to spend every month. First, make a budget, and keep aside the money required by you every month. In addition, put back an emergency fund for emergency situations and debt payments. Save and invest the other part.
2. Plan your debt pay off – If you have too many debts, plan as to how you are going to pay down the debts. This is going to help you ease the pressure of debt a lot. For example, if the debts you owe are large, you can try to follow the debt snowball method. Or else, if the interest rates on the debts are high, you can try the avalanche method of debt payment. If other options are to be considered, you can also try out debt settlement, debt consolidation and such other debt relief options to pay down the debts.
3. Plan to lower expenses – Lower your unnecessary expenses as much as possible. This will leave you with the option to use more money towards debt pay off.
4. Lower your credit card usage – Other than trying to lower your expenses, it is equally important for you to lower credit card usage. Only use credit as a last resort.
5. Give up on impulse buys – If you have always been buying things just because you took a fancy to those, its time to learn to put some control over your urges. Impulse buys in most cases are not necessary purchases. When in debt, and even when you have minimum debt, it is always better to avoid making impulse buys.
6. Find a way to increase income – In order to pay down your debts, and also handle other expenses, it is important for you to make a reasonable income. So, if possible, plan a job change, volunteer to work overtime, or try try developing a side hustle to improve your income.
7. Set a goal with regards to every serious matter – Whether it be the debt pay off, the savings, or the job change; it is important for you set a goal for all of these. Setting goals will help give the drive to follow through on your resolutions..
These are some resolutions you should strive to achieve to help you be able to become debt free. Another option is through debt consolidation, which can lower the interest rate on your debts and make it easier for you to pay them down. Whatever you do, it is best to follow a plan. Proper planning helps guide you through your financial situation.