A new year means new hope of making your budget goals stick and a chance to turn around debt that may have snuck up on you over the past 12 months. Most well-meaning consumers need more than just good will, however. These proven methods of tackling credit cards and personal loans can get your net worth headed in the right direction.
Be Realistic: As consumers prepare for tax season, one common sentiment will often be heard: "I'll use that big tax refund to pay down my credit card debt." While this is a noble way to apply tax refunds, it's more appropriate to consider how debt can be paid down gradually, as it is incurred, and without the help of windfall money. By developing a strategy for paying down debt in addition to refunds, bonuses or other cash that falls outside of your budgeted income, you'll be better prepared if the worst happens and you see no additional dollars this year. Use the assistance of debt calculators to figure just how long it will take to get out of debt, and be conservative in your estimates. What matters is that you are paying it down, regularly - not that you get it all paid off in an incredible amount of time. "Slow and steady" really does win the race, in this case.
A new year means new hope of making your budget goals stick and a chance to turn around debt that may have snuck up on you over the past 12 months. Most well-meaning consumers need more than just good will, however. These proven methods of tackling credit cards and personal loans can get your net worth headed in the right direction.
Be Realistic: As consumers prepare for tax season, one common sentiment will often be heard: "I'll use that big tax refund to pay down my credit card debt." While this is a noble way to apply tax refunds, it's more appropriate to consider how debt can be paid down gradually, as it is incurred, and without the help of windfall money. By developing a strategy for paying down debt in addition to refunds, bonuses or other cash that falls outside of your budgeted income, you'll be better prepared if the worst happens and you see no additional dollars this year. Use the assistance of debt calculators to figure just how long it will take to get out of debt, and be conservative in your estimates. What matters is that you are paying it down, regularly - not that you get it all paid off in an incredible amount of time. "Slow and steady" really does win the race, in this case.