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With the New Year upon us, it’s time to set resolutions for the coming year. Popular New Year’s resolutions including getting healthier, improving work performance, and spending more time with loved ones. Many people also set resolutions pertaining to their finances. They may want to spend less and invest more.

New Years Resolution Manage Your Debt

(Pixabay / JESHOOTS)

If you want to trim down your debt in the coming year, there are some important steps to take. The first is to commit to make regular payments and ensure that your debt will not spiral out of control. If you have a large amount of debt, you need to put extra effort into making bigger payments if you are intent on erasing all your debts within the year.

Clearing up your debts by committing to make regular payments could be complicated when there is an urgent matter that needs to be addressed immediately. The fact is that cars die and unexpected medical problems crop up. When this happens, you will need to do some prioritizing. As a general rule, try to make at least the minimum payments on your outstanding debts. Granted, this may not decrease your debt, but it will stop more from accruing. You should also prioritize your debts. Which ones carry the highest interest rates? Credit cards usually assess the biggest interest fees, so it’s probably best to pay those bills down first.

You should also make yourself a budget. Write down all of your expenses and do the math. Can you afford everything your paying for? Is there anything unnecessary in your budget that can be slashed? Stick to your budget. It may take some creativity, but there are ways. If you have allotted a certain amount for gas, try carpooling if you start reaching your ceiling limit. If you are pinched to stay within your budget for groceries, try cheap meals such as crock pot beans and rice.

If your home is in need of a facelift, but you don’t have the resources, try cutting corners. For example, you may have a scratched or worn-out countertop but can’t afford a marble or granite alternative. In this case, consider Instant Granite vinyl covering which will give you the look and feel of a stone countertop at a mere fraction of the price. Instant Granite countertop is easy to apply and comes in a variety of different patterns that look just like the real deal.

Staying on course financially isn’t easy, but there are a number of ways to draw down your debt without having to deprive yourself at every turn.