Unfortunately like most new year’s resolutions, it will most likely be forgotten about in a few weeks.
If you have decided that this is the year you will finally sort out your debt, below are some ideas to help you reach your goal.
Get rid of the Bad Habits
For example going on spending sprees, making impulse purchases or taking out payday loans.
If you enjoy shopping because it feels like an escape or makes you feel better about things, try replacing it with another physical activity.
For example, you could go jogging or running. When you exercise you release endorphins which can help improve your mood.
If you are a payday loan addict, try to remove the need for a payday loan. If you find you are running out of money at the end of the month, try to reduce your monthly expenditure.
Try to make getting out of debt seem fun
I set up this blog which I enjoy working on. It also serves as a place for me to record my debt repayment progress.
I also enjoy seeing the amount I owe reduce each month, or when I settle a debt in full.
You could always give yourself a little treat whenever you reach a milestone, for example when you have paid back 10% of your debt. However the treat shouldn’t be too expensive otherwise that would be counterproductive to what you are trying to achieve.
Consider your Financial Options
If you have a good credit rating, you may be able to consolidate all your debt into one loan. This would only be a good idea if the total cost is cheaper than it would be leaving things as they are.
You could also consider a balance transfer credit card. If you have a good credit rating, you may be able to move your existing credit card debt onto a 0% card. You would then start paying it back and hopefully before the 0% deal runs out.
It is worth checking that there aren’t any fees involved when using a balance transfer credit card. It could mean you end up paying more than you would if you left things as they are.
You should also check what the interest rate will be after the promotional period has expired. You don’t want to end up paying more than you have to.
Stop taking on more Debt
This may sound obvious but you are not going to get anywhere by taking on more debt. If you are finding that you need credit to keep on top of things, it is time to start sorting out the underlying issues.
Getting help with your Debts
What if you have been ignoring your debt problems and decided that this year would be the year you do something about it?
You can contact one of a number of organisations who will help you without charge. They can provide advice on a number of solutions. See the helpful links section of this blog to start with.
Finally do you have any ideas for keeping your New Year Resolution for paying back debt?