Things like buying new tires, replacing a refrigerator or even holidays can overwhelm even the best budgets and result in more debt.
(PRWEB) January 17, 2013
Many people’s New Year resolution was to make 2013 the year to get out of debt and gain control over finances. Below, American Financial Solutions offers a few tips to keep people on track, motivated and out of the red in this New Year.
1. Check your W-4 withholding's. If you are like many people you forget to check withholding's every year. This could result in either paying too much in taxes (big refund) or paying too little (writing a big check). Think of it this way, if you are paying too much in taxes, you could be using that money to pay down debt. If you are paying too little, you will be incurring debt.
2. Save! It is difficult to avoid financial Armageddon without a savings plan. Things like buying new tires, replacing a refrigerator or even holidays can overwhelm even the best budgets and result in more debt. Savings are the lifeline to a secure financial future. The rule of thumb is to save 10% of your income, but the goal is to just start saving.
3. Shop wisely. Go on the Internet, turn on the radio or even the television and people everywhere are talking about the deals, the discounts and the savings they have made by shopping sale, coupons and thrift stores. You purchase the things you need at a lower price and avoid new credit card debt.
4. Pay down your debt. If you are making minimum payments on debt right now, adding even $1.00 will pay your debt down faster, although probably not enough to notice. What is most important is to have a plan for how you can get out of debt in a reasonable amount of time and without paying exorbitant interest rates. This leads us to our last tip.
5. Ask a professional. Contact a certified credit counselor to help you develop a strategy for paying down debt, saving money and using a budget to help manage your expenses. When it comes to debt, what we do not know can hurt us. A non-profit credit counselor can help you understand all of your debt repayment options and help you get started on the right financial path this New Year.
Finances, like learning, are ongoing part of life. Avoid the personal fiscal Armageddon and take action on each of these five points today.
American Financial Solutions (AFS) is a non-profit financial education and credit counseling agency. Accredited by the National Foundation for Credit Counseling and the Association of independent Consumer Credit Counseling Agencies, AFS is committed to helping people improve the quality of their lives through financial education and counseling. Check us out on Facebook, Google+, Twitter or Pinterest.