Around this time each year, many Americans find themselves reevaluating the past year and resolving to make the next one better. We promise to be healthier, get back in shape, call our in-laws more; but one thing we tend to forget to rebuild is our finances. This year, the Credit Advocates Law Firm wants Americans everywhere to get back on the path toward good credit, and we have just the tips to help you get there.
First, take an overall, honest assessment of what you owe then create a repayment plan for what you want to pay off first. Be sure to tailor your plan to suit you, for example if you are more motivated by smaller and more immediate accomplishments, start with the cards that have the lowest balance. Understanding what you owe and figuring out how to tackle the payment is a promising first step in the process of debt resolution.
Next, start off strong by paying more than the minimum on your bills and paying it on time. Even if you can only afford a few dollars over the minimum, it will eventually add up. Also, paying your bills on time is an easy way to boost your credit score while avoiding costly late fees.
After you’ve regained a handle on your payments, focus on resolving some of the spending habits that got you off track in the first place. Try to limit your credit usage to only one card while working on getting the others paid off. Additionally, remember to exercise restraint when shopping and don’t forget to always ask yourself “Do I really need this?” and, “Can I pay for it with cash?”
Finally, it is important to build a solid support system of peers and advisors to help you along the way. Talking to your family and friends about what you’re going through can be a big help in reaching your goals. However, if you do not feel comfortable sharing your financial details with them, try contacting a financial counselor or competent legal advisor.
Debt management is something you must want to do for yourself, but you do not have to go through the process alone. This New Years, if you decide to make a resolution for a financially secure 2012, remember that the attorneys at Credit Advocates Law Firm are available six days a week to help with any issues you may have.