Olde Hornet
Well-Known Member
It's time you finally paid off your debt in 2020. Here's how to make that resolution happen
A lot can happen in a year. You can get a new job, pick up a new hobby or, just maybe, you can finally pay off your debt.
www.usatoday.com
Set yourself up for success
Before you set your specific debt payoff goal, lay the groundwork, so you can achieve your ambitions.
This means at least roughing out a budget and getting to know the details of your debt. Look through your bank statements to see how much money you have coming in and where it goes monthly. Separately, put together a list of your debts, including their balances, monthly payments and interest rates.
“In many cases, people don’t have a budget at all, or it’s been a while since they paid attention to their expenses,” says Lauren Anastasio, a certified financial planner at SoFi, an online lender. “The reason [a budget] is so important is it’s the way to really be honest with yourself.”
Make a resolution you can achieve
Now that you have a detailed understanding of your finances, use it to craft the right goal for your circumstances – and understand what motivates your debt payoff.
Rather than focusing on the grand total of what you owe, center your goal on what you can pay monthly. That way, you can create a resolution that works for your budget. If you owe $10,000 in credit card debt, but you can afford $500 a month toward your debt, you’ll be able to pay off $6,000 over the course of the year.
