Starting a new year can serve to zero the counter in many facets of life. Before the 365 days ahead, it is a good time to leave behind customs that are not entirely beneficial and set some purposes that help you improve your life [Read here the 10 financial purposes for the new year ]. Among those habits that are best to get rid of is that of owing money , so it is best to settle debts to start the year free of charges and try not to fall back on them. It is obviously not an easy task, but these tips can help you get it.
Ideas to settle debts
The first thing you have to do to settle debts before the end of the year is to cut what you spend and spend that money to pay what you owe . It is true that December is a month that is charged with holiday expenses, but you have to be aware of whether you can afford them. Nothing happens because this year you give up Christmas meals with colleagues and friends, you can then join the coffee.
Similarly, postpone purchases of gifts until January and take advantage of the fact that there are stores that on day 2 already have discounts. If you really want to settle debts, transfer the situation to your family and they will understand that this year the Magi come with less presents. But this will bring you something more important, the peace of mind of knowing that you don’t owe money and that your economic situation is better in the new year.
It is very important that to settle debts you do not end up getting more . It is a very common phenomenon that ends up becoming a problem rather than a solution. Given this, you can try to reunify the debts you have to see if you save even if it is a part of the interest you are paying. Negotiate with the financial institution to which you owe money and explain the situation.
Even if you want to settle debts, don’t fall for a private lender. It may seem like an easy solution in a moment of despair, but the vast majority will end up charging you more interest and may be less understanding and gentle in ways than financial or credit institutions.
As a general rule to settle debts before the end of the year you have to be aware that it requires a great effort to cut expenses, since much of your income should be used for this purpose. Take advantage of the extraordinary payment , if you have one, to dedicate it to finishing paying outstanding accounts. It is not a good taste dish to not be able to give you, or your family, a whim at Christmas, but think that if you improve your financial situation, and this is an important first step to do so, next year you can live more relaxed this time of year .