The New Year is almost here. And while many people may be getting ready for this evening’s festivities, others may be making some longer-term plans to improve their life in 2016.
For those who are focused on getting out of debt and improving their finances in the New Year, here are some essential tips for getting on track:
- Put yourself on a monthly budget – Figure out what you have to spend each month to cover your essentials (including living expenses and bills), as well as your maximum monthly spending limit. Be as detailed as necessary in putting together your budget and keep it realistic. Once it’s finalized, commit to sticking to this budget for 2016 (revising it as or if needed moving forward).
- Prioritize your debts & develop a realistic repayment plan – The next step to getting your finances on track in 2016 can be to analyze all of your debts, prioritizing them for repayment based on the debts that are costing you the most. While we detailed how to prioritized debt here, in general, it’s wise to focus on paying down the debts with the highest interest rates and outstanding balances first.
- Limit your use of credit – As you focus on paying down your debts, keep a close eye on your use of credit, especially if your outstanding debts involve credit card debt. One helpful tip for managing your charges can be to only use your credit cards for specific or limited purchases, such as your monthly cellphone bill or your weekly fuel purchases.
- Avoid opening new lines of credit – This can sabotage your efforts to get your finances back on track so avoid it if possible. Adding another line of credit can not only impact your credit score and increase your debt obligations, but it can also make it more difficult to manage your debt, possibly making it more likely that you will miss a payment in the future.
- Know when it’s time to get some professional debt relief help – Even though you may be focused and diligent about taking the above steps to reduce your debt, things out of your control can compromise your efforts. For instance, a layoff or a new illness can end up ruining your attempts to get your finances back on track. If or when this happens, getting professional debt relief help can be the key to avoiding more financial problems.
Contact a Denver Bankruptcy Lawyer at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust an experienced Denver bankruptcy lawyer at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services. With more than 50 years of combined legal experience, our trusted lawyers have the legal knowledge, skills and insight you can rely on to help you favorably resolve your debt issues and obtain a financial fresh start.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.