Resolutions for a Debt Free New Year (3 Minute Debt Break)

H

appy Almost New Year!  With this new year comes the chance to tackle those resolutions you’ve been thinking about. Especially the financial ones. But it can be tough and setting goals to reduce debt and actually making a dent in it are two different things. So, here are some solid steps to help you move confidently towards a more debt-free life in 2024.

First things first: know what you owe. Dive into your debts and pull up all your bills, statements, and online accounts. Get all that info into one place, like a spreadsheet. List out the type of debt, interest rates, balances, and monthly payments. Keeping a constant eye on your debts makes it easier to plan and stay on track.

Next up, let's talk budget. On a new spreadsheet, jot down your income and all your expenses. Don't forget those little things like online subscriptions or your daily coffee. And be sure to include your savings, recreational fun money, and debt payments too.

Now, the third step: cut back on expenses. This is the time to scrutinize your budget. Where can you trim the fat? Here are few suggestions… like less takeout meals, smarter grocery shopping, buying non-perishables in bulk, downsizing your streaming subscriptions, nudging down the thermostat, and hopping on public transport. Those are some classic ways to save cash. But get creative – there are tons of ways to reduce spending.

Next, it’s time to strategize. Pick a debt repayment plan that fits your financial situation. Maybe focus on knocking out one specific debt first, paying minimums on the others. Or, think about consolidating your debts into one manageable monthly payment. The idea is to have a clear plan for the next couple of years.

These are just a few ideas to start chipping away at your debt. But you're not alone. At MNP, a Licensed Insolvency Trustee is ready to help with a Free Confidential Consultation. There’s no cost, no obligation to these services, and no debt minimum to book an appointment. We can help you look at your whole debt picture, talk about your challenges and goals, and find ways to wipe out that debt for good.

You can make 2024 the year you take control of your finances and start saying goodbye to debt. It's totally doable, and you've got support to help you along the way. Here's to a financially savvy new year!

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