Now that the New Year has arrived, it could be a good time to think about whether you want to work towards any resolutions. This is the time where many people consider everything from losing weight to giving up smoking, but could you pick something with a financial angle instead? For some reason, many of us tend to avoid the topic as we don’t want to face up to reality – whether it is how much debt we are in, or how much we end up spending on new clothes each month. Either way, it could be the ideal time for you to get a grip on your finances, whatever your end goal is.
If you need a push in the right direction to get started, have a read of these popular financial resolutions to see whether any of them might apply to you…
Pay off debts
There are many people who have taken out multiple lines of credit but now want to take control of their finances – are you one of them? When the temptation of credit cards is there, it can be hard to stop yourself spending; this often leaves you with large monthly payments that only grow when interest is applied. There are a number of possible solutions for paying off debts; one is to make larger monthly payments so the debt is paid off more quickly, or you could think about debt consolidation. Providers like Zopa offer a loan that could be helpful for debt consolidation; the idea is that you could achieve a lower interest rate, as well as only needing to pay one creditor as opposed to all of the ones you pay currently – you can read more about this online.
Then again it might be the case that you are more interested in saving up money instead. There are many reasons why people choose this as a resolution, but some of the more common ones include wanting to buy a house, getting a new car, doing home renovations, or even just saving up for a rainy day. There is no ‘one way’ that people save; it is simply about putting by what you can afford to, and depositing it in a safe place. You can get more information about saving from the Money Advice Service, or by speaking to an impartial financial adviser.
In some cases, it might even be possible that you are owed money from people or organisations. Sometimes the New Year is the time that people decide they are going to seek the funds that they have been due, whether for a couple of weeks or even years previously. When all added together, debts owed to you can come to a fair amount, which is why some people think that the effort put in is worth it. However this could also act as an opportunity for you to reconsider whether you would lend money to a friend or family member in the future if you are unsure about getting any cash back off them.
Whatever way you do it, focus on taking control of your finances this year.Read More