As with most topics in personal finance, it's never too soon to be thinking about getting out of debt. Though only 8 percent of people keep their New Year's resolutions, making the decision for 2013 to be the year you end without debt can be a great motivator. In this difficult economy, it's easy to end up swamped in financial trouble. In short, the less debt, the better.
Reducing credit card debt can be a great challenge due to high interest rates. However, paying of all new charges added to the card while also paying down the balance is a good start. Paying down credit card debt is the best way to improve a credit score. Keeping track of all expenditures is a great way to ensure that payments are made on time and to keep in mind where the money is going. Realizing that every time you buy a cup of coffee it's adding up to a substantial monthly expenditure can help to find areas of spending to cut down on.
On the same note, sticking to a budget -- it seems obvious, but most people don't want to do it. It can be challenging to develop and stick to a budget, but it is a fool-proof way to ensure that you have more money coming in than going out and that every bill is covered. Many families find themselves in bankruptcy due to an inability to pay the amounts on time. Avoiding bankruptcy should be a priority for any homeowner, as the results can be disastrous.
Families in need of debt relief may consider legal advice in order to avoid ending up in bankruptcy. With California municipalities so much in the news recently in regards to their own bankruptcy, it can never hurt to consider your family's financial situation.
Source: U.S. News, "Get-Out-of-Debt Resolutions for 2013," Nov. 28, 2012
Source: http://www.losangelescountybankruptcyattorneys.com/2012/11/setting-resolutions-get-out-of-debt.shtml
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