The New Year is fast approaching and this can be a great time to reflect on the past 12 months as well as to create new goals for the future. If your resolutions include becoming Debt free, the tips below may help you to stay on track and avoid racking up any new debt.

1. Re-evaluate your budget: Perhaps the most important component to a debt-free lifestyle is the creation and periodic evaluation of a detailed budget. If you have never made a budget, a quick google search will turn up numerous free resources. Look for any areas where you may be overspending or expenses that can be cut entirely. For example, frequent restaurant visits can quickly add up. Additionally, don’t be afraid to reevaluate your budget when new expenses come up.
2. Curb holiday spending: It is no secret that the holidays are here and with them comes one of the busiest shopping seasons of the year. If you’re going to spend on gifts, food, or travel, be sure that they fit into your budget. For more tips on holiday spending, during this or any year, check out our blog post on the topic.
3. Open a savings account: Have you thought about your budget? Don’t forget to include savings. If you have looked into a dedicated savings account before, you may have run into suggestions such as putting away around 10% of your income. In truth, any amount that you can save is helpful and if you can only put away a couple dollars here and there, that is a great start. If an emergency occurs, any financial padding can help to prevent or reduce your need for credit or loans.
4. Consider options for building credit: It is understandable that you may be hesitant to open up or use a line of credit, especially when that behavior is what got you into trouble in the first place. However, being selective with credit cards and financial commitments can allow for a degree of flexibility while building your credit. Just remember to never take on more financial responsibility than will fit within your budget.
5. Don’t get discouraged: Debt management is not a one-time deal, but an ongoing process. If you fall into a bad habit or find yourself getting off track, take a deep breath and focus on your goal. Setbacks are often a part of life, but the important thing is to keep moving forward. Consider seeking help for debt management or ask a friend or family member to keep you accountable.

If you feel as though you have tried everything and simply cannot get ahead of your payments, it may be time to consider bankruptcy. This decision has the power to affect your finances for years to come and should only be made after carefully considering all of your options.

When you are ready to take the next steps, contact the Maida Law Firm, P.C. The firm’s Beaumont bankruptcy attorneys possess over 40 years of combined experience. Additionally, Attorney Frank J. Maida is Board Certified in Consumer Bankruptcy Law by the Texas Board of Legal Specialization, an achievement shared by only a small percent of attorneys.

Call Toll-Free (409) 234-1490 or request your initial case evaluation online and speak to a knowledgeable attorney about your financial situation.