The new year offers the perfect opportunity to make a fresh start. While personal resolutions span far and wide, many people set finance-related goals for themselves once January approaches. If debt relief is your resolution for 2020, here are some steps you can take to start getting your finances on track.

3 Debt Relief Tips for 2020

1. Add Up Your Owed Debt

Adding up everything you owe may seem daunting, but you need the total to know how much progress you’re making toward your goal. Remember to incorporate interest rates so you have an accurate picture of how much you’ll need to pay to resolve your debt.

2. Break It Down Into Milestones

Once you have a total, determine what you can realistically put toward your debt each month. Many people use the 50/30/20 rule: 50% of their income goes toward necessities such as rent or mortgage payments and utilities, 30% goes toward wants such as dining out, and 20% is put toward debt and savings.

With this plan, you can break down your debt into smaller goals and determine how long it will take to pay off each card. You may want to pay off lower balances first to experience a sense of accomplishment.

3. Use Technology to Your Advantage

One important part of debt relief is staying accountable. You can save yourself from the temptation of spending more by setting up automatic monthly payments.

Additionally, consider downloading an app to help you track your spending. If possible, avoid using credit cards until they’re paid off to avoid creating more debt. Instead, link a banking app to your debit card and watch your spending closely. The app will provide insights into where your money is going.

If you’re experiencing financial challenges and need professional debt relief help in the new year, turn to Donald L. Spafford, Jr., Attorney at Law. Serving Honolulu, HI, this trusted attorney and his team specialize in helping clients consolidate their debt, resolve for bankruptcy, and find personalized solutions that allow them to manage their finances more effectively. Schedule a free consultation by calling (808) 532-6300, or visit their website for a full list of services.