Now that Christmas has come and gone, most people are starting to re-gear toward the new year and getting back to the regular routine. For some Escondido residents, this simply means continuing the same old financial practices. However, the new year could leave others looking for a fresh start when it comes to credit debt.
Millions of Americans took a hit to their credit scores with the impact of spending around the holiday season. Some will be able to accommodate this new debt, especially in the form of credit card debt, more easily than others. For those who will feel the pinch of debt more acutely in the new year, a recent article offered some tips on how to work back to a more balanced financial situation.
The first tip is to change the approach to spending in the new year. This especially means avoiding what is commonly known as "impulse spending." Avoiding purchases that really aren't necessary can help save money and avoid adding to a debt burden. The next tip is to focus on paying debt that has already been accumulated. The article suggests focusing first on those debt obligations with the highest interest rates, such as credit card debts. The other tips that our Escondido readers may be able to put into practice are to stop using credit cards that aren't absolutely necessary and trying to set aside more of the household income for investments that could grow the amount of money available overall.
Many Americans will be able to make the necessary changes to their finances that will enable debt payments to be made timely and in the correct amount. However, anyone who finds themselves in a bit more problematic situation with debt obligations may look at the benefits of filing for Chapter 7 bankruptcy in the new year.
Source: The Financial Express, "Manage your debts with the onset of 2014!," Dec. 25, 2013