Have you started thinking about how you will change your finances for the better next year? Lots of resolutions are dissolved about as fast as they start. Straightening out money problems is a good promise to make; especially when tax returns loom on the horizon. Getting a refund check offers lots of hope to those who overspent their holiday budget or have not recovered from on-going debt troubles. Could your financial future be free of online payday loans and maxed out credit cards? Depending on your new approach towards improving your financial situation, you could be well on your way to living debt free.
There are many variables that are not controlled by individuals. The only thing a person can do is to prep their finances to handle emergencies without needing third party money help. What will happen if you lose your job, become ill or lose a partner? You can take action to control some of the financial aftermaths of these emergencies. Living off short-term payday online loans and credit cards is only a band-aide for a financial break.
Payday loans help with small financial emergencies.
Since your income is the base to the ebb and flow of life, it is important to control as much of the flow as possible. Going from a two income household to a single income family or worse unemployed what was once affordable is now a financial burden. You will want have to have time to find a new job or grieve a loss before you will be able to work at getting things back on track. A personal emergency account will buy you the time you need to get through your financial crisis. For those people who have 6 months of income saved away, there is less stress involved and healing emotionally will be easier without the financial burden.
So here you are. Sitting in a pile of financial debt may feel like quicksand, but if you look at the facts, you will see that survival rates are in your favor. Piles of debt may seem the opposite, but people are recovering more and more with a set financial plan and strong determination. Not only should you work your way out of debt, but you will also want to build a savings account as well. Some days may feel like you are sunk with fingers waving above but it won’t be every day.
Take your good days with the bad days. Take them in stride. If you get overconfident, you may overlook details. If you give-up, well, take your last financial breath.
Compile a list of your debt and focus on getting rid of bad debt first. Don’t worry about your mortgage, your auto loan or your student loans just yet. In fact, if you have student loans, your income level could qualify you for income-based payment plan. Look into it. If credit card and payday lender debt is high, you may want to look into managing the debt differently. Could you consolidate your debt? Seek counseling with a free credit counselor? Or is the total so unaffordable that you may have to seek help from a debt settlement company or bankruptcy lawyer?
Take the start of the New Year and dig deep into your debt. Organize the outstanding expenses and work out a plan to pay it off in the most cost effective manner. If you get a tax refund, see what you can do with it to start the attack towards bills as well as jump start your savings account. The sooner you can pay down the debt the better. Interest on these accounts only speed up the flow of your income. Why do you want your income to flow into a company’s pocket instead of your own? Stick to your financial improvement plan and make this year count.
