Ideas for Your Debt Reduction Resolutions for 2013

As 2012 comes to a close, you may be starting to draw up your resolutions for 2013. If you are struggling with your mounting debts and you wish to once and for all do something about it, you may want to create a separate list for your debt reduction resolutions next year.

Here are some suggestions for your debt reduction resolutions for 2013.

One of them is to choose a debt relief program. This does not mean you should hire a third company but a professional can really help out. The bottom line is to come up with a plan to tackle your debts once and for all. You have various choices before you and all of them are effective. It is important that you consider your financial capabilities before you truly set your heart on one debt reduction program.

Making a firm stand to spend only cash is also another resolution that you can add to your list. It will help you discipline yourself so you will avoid incurring more credit card debt. This is a very powerful tool that allows people to live beyond their means - another resolution that you should work on.

Resolution number three on your list is to start living within your means. This implies that your expenses should be lower than what you get every month. This can mean restricting your use of credit cards and making sure that before using it, you have the cash on hand to pay for the bill in full when the statement arrives.

Creating your personal budget plan will help you achieve this. That is resolution number four. A budget plan will allow you to see how your income is being spent, and how much of it goes towards paying off your debts. If you think that there are expenses that can be stopped and funds directed to your debt payments, then it can be identified through a well constructed budget.

If your budget shows a higher debt to income ratio, you can add to your resolution list the growth of your income. Get a second job, set up a passive income generator, or capitalize on a hobby to make extra money. These are only some of the things that can help you increase your monthly cash inflow.

Saving and increasing your emergency fund is also a good resolution to have. This will ensure that when something unexpected happens that requires a huge amount of money (e.g. job loss or medical bills), you don’t have to borrow to be able to afford the necessary expenses.

Lastly, make a decision to always check your credit score. As you are going through a debt reduction program, your credit score will take a hit and it has to be repaired if you truly want to enjoy debt freedom. Add this to your growing resolution list.

Ultimately, your resolutions can only make a difference in your life if you choose to follow through diligently. Discipline yourself and work on making your resolutions a regular part of your life this coming 2013.

If you wish to know more about debt relief, compare the top debt solutions by visiting the National Debt Relief website. You have various options like debt management, debt consolidation loans, debt settlement and bankruptcy. Talk with a debt professional now. The initial consultation is free and there are no obligations upfront.