As the end of the year quickly approaches many will begin to think about the year ahead in terms of their financial future. However, there is still time this year to tackle your financial struggles. The key is not to wait until the last minute. Poor planning and missed opportunities this year can hinder the beginning of a financially secure new year. Therefore, understanding key financial moves will help you in the process of debt elimination.
Key Financial Moves to Make by Year End
Start with Your Budget
Your budget is the best place to start your financial goal evaluation. Paint a clear picture of your financial situation right now. This Budgeting & Daily Expense worksheet might be a good resource for you to use. Once you know where your money is going you can identify areas to cut back. This will also help you find more money to apply towards your debts, or add to your savings and get a good head start for the new year.
Plan Today for a Better Tomorrow
Think now about your budget for the coming year so that on day one, you can start an emergency fund for “just in case.” You never know when you are going to be impacted by an unexpected event, like a job loss or medical expense.
Steer Clear of Bad Credit
Remember that every consumer is entitled to one free credit report per year from each of the credit reporting agencies. We recommend visiting AnnualCreditReport.com to get free copies of your credit reports. Once received, review to ensure the accuracy and check for any erroneous information. Work with the credit reporting agencies to get this corrected. A good credit history is the foundation for better financial health.
Pay Off What You Can Now
Reviewing your credit report also provides the opportunity to review your outstanding debts and develop a plan to get your credit cards paid off. There are different methods of paying down/off your debt and it’s a personal choice; the Debt Avalanche or the Debt Snowball methods, for example.
See Where You Can Improve – Research!
The start of a new year is often accompanied by a renewal or new enrollment into employee benefits, including retirement savings accounts, healthcare reimbursement, and wellness savings. Meet with your HR department to walk through any company benefits that you may not be taking advantage of.
If you are working to eliminate credit card debt and need assistance speak with a certified credit counselor at American Consumer Credit Counseling today 800-769-3571.