The end of the year is the perfect time to reflect on the past 12 months, and when you’re being smart about money, this includes your finances. What should you have done differently last year to make your credit stronger, your debt smaller, and your bank account fuller? It’s a brand-new year — a perfect time to commit to wise financial resolutions that will leave your bank account and credit history in better shape than ever. See how many of these resolutions you can incorporate into your life this year.
- Pay Down Debt
There’s nothing that feels quite as good as being debt-free. Give yourself the gift of paying down your debt steadily starting today to make a big difference in your finances — and your life — that you’ll be proud of in 2016.
- Save For Emergencies
Just because credit cards are available in emergencies does not mean you should use them. Avoid the pitfalls of emergency-induced debt by saving a portion of your paycheck each month, just in case.
- Pay Bills On Time
Do whatever it takes, whether it’s setting reminders on your calendar or putting a note on the fridge, to pay your bills early or on time. Save yourself — and your credit — from the aggravation caused by late payments.
- Understand Your Spending
This year, make an effort to know precisely what you’re spending on. Add up superfluous monthly expenses and multiply by 12 — what else could you be doing with that money?
- Ask For A Lower Interest Rate
One short phone call could lower the interest rates on your credit cards. It never hurts to ask — and if they say no, see about transferring your debt to a lower-interest card.
- Use Autopayments
Simplify your life and banish late payments in one fell swoop by setting up autopayments. Be sure to leave a safety buffer in your checking account just in case.
- Make Smart Investments
Got a little extra cash on hand? Put it aside into safe investments like CDs or high-yield savings accounts to make that money work for you.
- Never Max Out Your Credit
If you’re hitting the limit on your credit cards regularly, you’re damaging your credit score. Try switching off between your credit and debit cards so your balance never gets too high, or pay off a portion of your card early in the month.
- Hang On To Old Accounts
Having long-term credit accounts actually helps your credit history. If you’ve moved to a different creditor, consider keeping the old account — just be sure to monitor it to ensure there are never any outstanding charges.
- Dispute Any Errors
Read your credit card bills and annual free credit report closely to check for errors. Clear up any mistakes as soon as you see them to keep your credit line and credit history clean and accurate.
If you know you can make one or more of these resolutions, but need help figuring out how, give us a call. We’d be more than happy to help you find a way to make —and keep — positive financial resolutions this year.
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