Give Your Finances a Spring Cleaning with These Tips
With the arrival of daylight savings time this spring, consider it an extra hour or two to improving your finances so that you can get out of debt. Debt is not going to be hard to get rid of. It will take hard work, delayed gratification, and a positive attitude. But the rewards will be worth it when you finally become debt free. Here are some ways to spring clean your finances.
Put Your Tax Refund to Use
If you will receive a sizable tax refund this year, why not use part of it to reduce your debts? These debts might include credit cards, student loan debt, your mortgage, or your car loan. This could speed up the debt elimination process, and if you do this with every tax refund you receive in coming years, you could be closer to debt freedom.
Review Your Credit Report
This is essential to getting out of debt. Visit AnnualCreditReport.com and obtain copies of your report from these credit bureaus: Experian, TransUnion, and Equifax. Write down the list of debts you currently owe, and then contact each creditor to make payment plans. If you see errors, write dispute letters to the credit bureaus. Include the name of the debts along with copies that verify those errors on your report.
Budget Your Income
When you have a workable budget, it gives you a better idea of much money you bring in each pay period, and you'll be able to figure out how much you can afford to put towards your debts. Write down your income along with your regular monthly expenses such as rent, groceries, clothing, and utilities. Then write down any miscellaneous expenses that you have. From there, you should cut out any unnecessary expenses from the budget. These include magazine subscriptions, gadgets, or pricey hobbies.
Pay More Than the Minimum Balance
It also helps to pay more than the minimum balance when getting out of debt. Use any surplus money such as bonuses, raises, inheritance money, or life insurance funds to do this. When you go beyond the minimum balance, you avoid paying mainly the interest but not the actual principal.
Do the Side Hustle
Boosting your income this spring is another great way to pay down debts. This is why side hustles are so popular these days. Some side gigs you can try include:
- Virtual assistant
- Retail Jobs
- Freelancing
- Selling goods online
- Babysitting
- Pet sitting
- Lawn mowing services
- Social media management
- Blogging, along with affiliate marketing
Pay More Than the Minimum Balance
It also helps to pay more than the minimum balance when getting out of debt. Use any surplus money such as bonuses, raises, inheritance money, or life insurance funds to do this. When you go beyond the minimum balance, you avoid paying mainly the interest but not the actual principal.
Consider Debt Settlement
With debt settlement, you're negotiating with creditors to accept part of the balance as the satisfaction of the debt that you owe. Debt settlement can work for you if you want to avoid bankruptcy as a last resort for starting over financially. This might also help you if are dealing with long-term unemployment due to illness or a layoff.
In conclusion, you can use springtime and daylight savings to your advantage by planning your financial future and climbing out of debt. With these strategies, it is possible.