There’s no better time than the new year to review your finances, answer key questions and take steps to obtain the fresh start you’ve been dreaming of.
Before you do anything, you must set both short- and long-term goals. This will help you adjust your financial approach accordingly.
These tips can help
Some people find it easier than others to get a fresh financial start, but anyone with the right strategy can make progress.
Here are some tips to consider:
- File for bankruptcy: For many, this is the best way to put their bad financial decisions in the past. With Chapter 7 bankruptcy, you’re able to discharge some or all of your debts. This is the true definition of getting a fresh start. If you don’t qualify for Chapter 7, Chapter 13 is another option to consider.
- Eliminate your credit card debt: If this is the only thing bogging you down, decide how to best eliminate your debt in the near future. Maybe you call your credit card company and offer to settle your debt for less than what you owe. Or maybe you use a balance transfer credit card to save money on finance charges and make it easier to manage your debt.
- Take control of your mortgage: Many people seek a fresh financial start because they’re concerned about foreclosure. If this sounds familiar, it’s time to take control of your mortgage once and for all. For instance, a loan modification or short sale could benefit you. Filing for bankruptcy is also an option, as the automatic stay puts a temporary hold on the foreclosure process.
- Create a new budget: There’s a good chance that you’re facing financial uncertainty due to the lack of a budget or the inability to follow the budget you have. Either way, a new budget may be just what you need to get back on track with confidence.
There is no shortage of steps you can take to get a fresh financial start in the new year.
No matter which path you choose, go all in. Soon enough, you’ll realize that you’re well on your way to having a better year with respect to your finances.