How To Make Sound Financial Resolutions For The New Year
Once the frenzy of holiday shopping has subsided, you will have a little bit of time to determine a few personal finance resolutions for the upcoming New Year. You may be carrying some outstanding credit card debt due to the holidays with you into 2012 and if you take a moment to make a plan now you can chart out how to best go about ditching your debt early on in the New Year.
Be Clear About Your Goals
The key to getting yourself back on financial track following a season of overspending, is to establish a few simple, realistic and attainable financial goals for yourself. Identify what is setting you back and formulate a plan of attack on how to deal with it. Once you have identified what, exactly, changes you wish to make in order to improve your overall financial situation you can take definite steps towards implementing them.
Cut Your Credit Card Expenses
If you are looking to avoid paying a ton of money in interest charges on your outstanding credit card balances, a balance transfer shortly after the start of the New Year may be exactly the right move for you. Over the past few months, card issuers have been flooding the market with tantalizing balance transfer offers, and because of the nation-wide decline in late payments and delinquencies there is every reason to believe that such deals will be around throughout the New Year. If you are approved for a card with 0% APR for a fixed amount of time on all transferred balances, then you are buying yourself time to pay down your balance without pesky interest piling up. Depending on the offer, your transferred balance could be interest free for over 20 months. If you are considering transferring a balance, be sure you go about it the right way. That is, formulate a plan to pay everything off within the promotional period of time and don’t make any new charges until all your debts have been paid off in full.
Consider Consolidating All Your Debts
If you have outstanding debts spread over a few different areas – credit cards, phone bills, etc. – perhaps 2012 is the time to consider seeking out a low interest loan to use to pay off everything and from there on out your repayment plan will entail only one bill per month. Some lenders are advertising loans that have interest rates lower than those on your current credit cards. Also if you are incurring any late fees in your struggle to remember to remit payments to multiple places on time, whittling down your debt to one single payment per month is well worth it.
Don’t Skimp On Savings
No matter what other financial resolutions you might make, be sure to make one to save. Although interest rates on savings accounts are currently lower than low, you still want to put aside a portion of your earnings on a regular basis to build up an emergency fund should you fall upon hard times in the future. Whether you choose to resolve to saving a set amount each and every month, give up a few of your discretionary expenses and sock away the savings or simply to squirrel away whatever you can, whenever you can, make a new savings plan for the New Year and stick to it.
Latest Other Card Guides
Each of us probably has a credit card in the back corner of your wallet that you haven’t used for a long time. And more than once you may have thought about whether you should cancel that card. But closing a card might not be the smartest thing to do, as this move could certainly […]Continue »
Personal data is any information that obviously relates to a particular person and can be used to identify them. It is a key aspect of online identity, but unfortunately, it can be exploited wrongly. Some individuals might steal personal data to hijack mailboxes, create fake documents, and use people’s contact information to harass them. Cybercriminals […]Continue »
Millions of Americans are at risk of identity theft every year. It’s a growing problem in the U.S., especially during the pandemic as identity thieves are targeting relief checks and unemployment benefits. Identity theft occurs when someone steals your personal information such as your Social Security number, bank account number or credit card information. There […]Continue »
In addition to the credit score and credit report, your debt-to-income (DTI) ratio is another important factor in your overall financial health. The debt-to-income ratio is the percentage of your gross monthly income that goes to paying your monthly debt and is used by lenders to determine the risk associated with you taking on another […]Continue »
The consumer credit market is picking up the pace while credit cards are becoming the preferred payment method for Americans, especially during the COVID-19 pandemic. Consumers are being drawn to credit cards because of their flexibility and the increased variety and volume of rewards programs. For any person, a credit card can be a good […]Continue »