Are You Full From Leftover Debt? Four Tips to Clearing Your Plate This Year

Now that the holiday season has passed and you have restored some normalcy to life, it’s time to look at your finances and discuss what has been keeping you up at night: leftover debt.

Beyond Finance understands the financial stress and strain that comes with money owed on credit card bills, creditors calling multiple times a day, and attempts to make more than minimum payments. We have helped many clients get out of these same situations.

You are not alone in this debt cycle. According to Nerdwallet, nearly 7 in 10 Americans have financial concerns about the next 12 months, with a top concern is having to go into debt, or deeper in debt, to cover necessities. There is certainly no shame in saying that you need guidance in moving beyond your debt.

Remember when cell phone companies would allow you to “rollover” your unused minutes from the last month? Back then, it felt like you hit the jackpot. Leftover debt is exactly the opposite. You do all that work in the previous month, only to be left feeling there’s no hope for your financial wellness.

What you may not realize is there is hope. Why? You can eliminate your leftover debt!

1. Take Inventory of Your Creditors

Taking inventory of your debt helps prioritize your debt.

Sometimes when you have several outstanding balances, it can be challenging to keep up with the payments, And then, there’s the inflated interest rate or even being penalized for not paying on time.

Start getting rid of leftover debt by organizing this information and planning to do better. It can help you sort out what takes priority and discover new options for ensuring your creditors get paid sooner.

2. Operate as a Business

Make sure you are reflecting on your spending habits to avoid leftover debt.

When you think about business in your favorite retail stores or even your job, ask yourself a couple of questions:

Do they make impulse decisions?
How do they decide to spend large amounts of money?
What trends are they studying to decide on an investment?

To stay in business and continue making money, they research and determine what will have the best effect on their future.

Spend what makes sense rather than what feels good at that moment. Remember that just like a business, you have a budget. Wherever you overspend, that money must be pulled from somewhere.

3. Budget For Leftover Debt

Having a set budget can help eliminate leftover debt.

Anticipating the needs of yourself and your family can be difficult, especially when something happens unexpectedly.

Curating a savings account and maintaining a clear budget will help you. Try changing your direct deposit settings from work to deduct a designated amount into your monthly savings automatically. You can start small with a specific dollar amount or a percentage of your check.

You can’t miss what you never saw.

4. Utilize Resources

Beyond Finance focuses on your financial wellness and your debt.

Understanding your situation and needing to find solutions can be difficult. At Beyond Finance, we offer resources to help you make better decisions. Even if you aren’t fully ready to become a Beyond Finance client and tackle your debt, we offer free personal debt assessments with no strings attached.

We know it’s not an easy process. That’s why we provide resources for everyone to experience, such as our budgeting worksheet and free financial advice through our blog. We take pride in educating our clients to make better decisions for the future. Learning about financial wellness is the first step to moving beyond your debt.