New Year's Debt Resolution Tips to Reduce Your Debt

budgeting debt

The start of a new year often symbolizes new beginnings. If overwhelming debt was a significant issue for you in 2021, it might be your new year’s resolution to regain financial freedom. To help you accomplish this, our Indianapolis bankruptcy lawyers have put together tips to help you reduce debt in 2022.

Tip #1: Assess Your Debt

Before searching for a solution to your debt, you first need to identify how big your issue is. Grab a notebook and write down all your monthly expenses and overdue payments. Once you calculate your monthly expenses, subtract that amount from your monthly income. You will then determine how much disposable income you have left and how difficult it will be to make ends meet.

Tip #2: Create a Budget

If you are not too far behind on your expenses, you should consider creating a budget. Budgeting is a great way to cut down on unnecessary expenses and put money towards paying off your debt. Consider cutting down on tv subscriptions, coffee trips, and other unnecessary purchases. You will be surprised to see how a little can go a long way.

Tip #3: Seek Financial Guidance

If you find yourself struggling to make ends meet every month, budgeting might not be sufficient to achieve your new year’s resolution. Consider seeking guidance from a debt relief attorney to learn more about your options. An attorney can help you determine if you can negotiate debt with creditors or if bankruptcy is the ideal solution for you.

Tip #4: Take Action

As months start passing by, it can be difficult to stay on track with your new year’s resolution. The hardest part is to take the first step. However, if you are dealing with overwhelming debt, your situation could only worsen the longer you wait to act. If you are looking to take the first step, contact our team at Jackson & Oglesby Law LLC. We can review your financial situation and help you determine the best course of action.

Contact us today at (888) 713-5148 to schedule a consultation!

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