The new year is a time for new beginnings, and if you haven’t already done so, it is time to make your New Year's resolutions for 2016. If you are living with overwhelming debt, this year’s resolution should be easy to determine – take control of your finances and improve your financial well-being in 2016. To make your New Year’s resolution easier to attain, we’ve compiled a list of several tools you can use to reach your goal.
Using Online Budgeting Tools to Take Control of Your Finances
Many people assume that living within a budget is simply a way of denying themselves the things that they want — this could not be farther from the truth. When you use a personal budget to track your income and spending, you are actually improving your financial well-being by saving money, reducing unnecessary spending, and learning to use credit more wisely. Living within a budget helps you attain the things you want without going farther into debt.
Budgeting does not need to be complicated or expensive. Many companies offer online budgeting tools and resources that can help you achieve your New Year’s resolution of improving your finances free of charge. In some cases, paying a small fee will give you access to more resources, tools, and tips. The first step in creating and maintain a personal budget is education. By reading the information provided through online financial websites, you can learn how to create and live within a budget.
Some of the most popular online budgeting websites include:
- Mint by Intuit
- LearnVest
- My Money by the Federal Financial Literacy and Education Commission
- Make a Budget by the Federal Trade Commission
Kain and Scott also provides free resources and budgeting tips and suggests on our resources page and our blog page.
Using a Financial Advisor
You do not need to be wealthy to seek the advice of a professional financial advisor. In fact, consulting with a financial advisor may help you take control of your finances and improve your financial well-being for the future. Financial advisors offer a variety of services; however, you need to make sure you understand the services being provided and the fees being charged for the service. Depending on the type of financial advisor you hire, a financial advisor can give you support and guidance as you reorganize and restructure your debts, develop a monthly spending budget, choose how to invest your savings, and plan for retirement.
You can find a great deal of information about how to choose a financial advisor and what to look for when you hire a financial advisor through the U.S. Securities and Exchange Commission and the Consumer Financial Protection Bureau.
Using a Debt Consolidation Company
Consolidating your debt into one low monthly payment may seem like a good idea to reach your financial goals; however, debt consolidation does have its risks. If you refinance your home to pay off unsecured debt, you could risk losing your home through foreclosure if you fall behind on your mortgage payments. Using a professional debt consolidation company can be expensive and some companies do not do everything they promise. If you cannot pay your debt, you may want to consider filing bankruptcy in order to resolve the debt problem. We believe that it is at least worth your time to take advantage of a free bankruptcy consultation to learn the facts about filing bankruptcy before you make a financial decision.
Filing Bankruptcy
In some cases, you may need to file bankruptcy in order to take control of your finances and improve your financial well-being. Filing a personal bankruptcy case gives you a fresh start by wiping out most, if not all, of your debt. Unsecured debts such as medical bills, credit cards, personal loans, some taxes, and pay-day-advances are typically discharged through bankruptcy. You will not be legally responsible for the repayment of any debts discharged in your bankruptcy case.
In most Minnesota bankruptcy cases, the debtors keep all of their property while getting rid of their debt. This gives you the opportunity to begin planning for your future and organizing your finances without the threat of debt collectors trying to seize assets or file collection lawsuits. Bankruptcy is an affordable solution to many debt problems; however, it is not always the best solution. You need to consult with an experienced, competent, and honest Minnesota bankruptcy attorney to determine if filing bankruptcy is your best option for keeping your New Year’s resolution to reach your financial goals.
