A Guide to Paying Off Debt in the New Year

It’s a new year and time for fresh starts and new beginnings. If you’re carrying debt, now is the perfect time to start chipping away at it! Carrying debt can be stressful, so it can be rewarding to get it paid off in a timely manner. Here are some tips for paying off your debt this year.

Create a Budget & Cut Unnecessary Expenses

The first step in paying off debt is creating a budget that works for you. Take an honest look at your income and expenses and determine what is necessary and what can be cut out. Look for areas where you are overspending and make small adjustments to your lifestyle to save money where possible. Once you have created your budget, stick with it! This will help you create wiggle room in your income so that you can begin paying off your debt.

Prioritize Your Debt

Once you have determined how much extra income you have available, take a look at all of the debts that need to be paid off. Prioritize which ones need to be tackled first – usually this means starting with the debts with the highest interest rates or fees first, since these will end up costing more over time if they remain unpaid. Make sure to pay minimum payments on any other debts while tackling one or two at a time until they are all paid off in full.

Utilize Balance Transfers & Payment Apps

If there are high-interest debts that cannot be avoided, consider doing a balance transfer from one credit card company to another in order to take advantage of lower interest rates or introductory offers such as 0% APR periods. Additionally, apps like Dave allow users to borrow up to $75 interest-free when short on cash and then pay back that amount plus $1 per month until the loan is repaid (the app also helps users create budgets). Utilizing these tools can help make paying down debt easier by reducing fees or providing options for small loans when needed most.

Paying off debt isn’t easy but it’s doable if done correctly and strategically with patience and persistence! Start by making small adjustments to spending habits – creating a budget and cutting unnecessary expenses – before focusing on prioritizing debts based on their interest rates or late payment fees; utilizing balance transfers or payment apps wisely can provide additional support during this process as well! With proper planning, discipline, and dedication, anyone can become free of their debt this new year!

If you are experiencing trouble with debt or overwhelming financial hardship, don’t wait to get help! You risk losing more than your paycheck if you get behind on payments, including losing your vehicle or home. Contact our Fort Worth bankruptcy attorney office today for more information. Our team of expert attorneys will review all of your options to help you make an educated decision for your family.