Is getting out of debt on the top of your New Year’s money-related resolution list? Many people nationwide think about that as the ball drops in New York City, but few can make it happen. Some of them are our clients who walk through this journey to get out of debt.
According to the American Psychological Association, 93% of Americans make New Year’s Resolutions. And, of that 93%, all but one percent make financial resolutions. If they kept them, 350 million people would be walking around with extra cash in their pocket each month of the year.
Think about that. One of those 350 million could be you!
Now, think about this: Why isn’t it?
Paving the Way to Financial Success
Much like we share with the hard-working people who trust Beyond Finance to get out of debt, you need structure if you want the calls to stop and the bills to get paid. The worry of debt can paralyze people who wish to pay their bills but can’t. As hard as they try, there is no structure to their finances, no path to financial freedom.
The structure provides building blocks to help people learn. And, as it pertains to debt resolution, those steps place you on a direct path. Each step is a lesson. Those lessons can be hurdles. And, as any client would tell you, each hurdle is an obstacle of debt out of your way and a big leap closer to honoring that resolution.
Both at Beyond Finance and before I joined the team, I have seen a money-related resolution supply structure for our clients. Living within those confines proves that getting out of debt is possible, and reaching the finish line is only a matter of time.
Hearing the phone ring shouldn’t cause stress. And going to the mailbox shouldn’t create fear. But it does to the thousands of families nationwide struggling with credit card debt. Possibly, that happens to you.
There are ways to stick to your guns and keep that New Year’s resolution to get you out of debt. If you chose a money-related resolution as your path and structure, here are five simple ways you can begin 2022 differently than you have before.
Ways to Keep That Money-Related Resolution in 2022
Set a Budget
If you can write down what you spend, you will have the dedication to align those receipts with what you can spend each month without going overboard. Once you create a monthly budget, it is easier to see what you have leftover each month. Perhaps that leftover money can help you pay down some bills? That will help you understand how much debt you’re facing? Whatever the case, you could make a more informed decision about your money from there.
Track the Spending
The most effective way to maintain your budget is to write it down. From a journal to an Excel grid to one of those free apps to help track where your money goes, you must be active to mind your money. Without that activity, it stays in your head, and who knows where it goes from there. Keep diligent writing down your receipts and match them to what’s in your account. That small notion of accountability may keep you from spending more than you have in 2022.
Pay on Time
Did you know not missing any credit card payments makes up 35% of your FICO score? If you have missed a couple, that could be the reason your score has gone down. If you can’t pay for the credit cards you used, it could go down more from there. The more you miss, the lower it goes, which affects any chance of getting a loan from a bank. If you are tempted to juggle your bills, put your bills on autopay. This way, you only need to monitor your bank account to avoid overdrafts.
Pay Yourself First
Anyone should know two things about their budget—how much is spent and saved. As you track your spending and follow your budget, see what’s left. If you have taken care of everything, the money you have left can become a payment to yourself. Now, get in the habit of paying yourself first. Make that account untouchable, so if you overdraft or when an emergency happens, you won’t be unaware or surprised.
Seek Any Options
It is essential to know there is no shame in not paying your bills. It happens. Life moves fast, and then before you know it…BOOM! You trip over a financial emergency. It could have been a medical bill, school loans, the car is in the shop, or even a divorce. Whatever the cause, the effect is drowning in debt. The calls keep ringing. The bills keep coming. And the stress keeps building.
Bankruptcy is a 10-year choice. Some loans can be challenging to get, depending on your credit. There is another way. One brief call and a decision to change your life could make the difference. You can get through this. And, if you can’t do this on your own, you can get help.