02 Jan
Posted by Admin as Credit Cards
Around this time of year, many people may be contemplating resolutions for the new year, including common ones like quitting smoking or losing weight.
However, given the recent problems some consumers have had with debt management and budgeting, other people may take a different approach this year by sticking to financially-related promises for 2010. Recently, the CEOs from member organizations in the National Foundation for Credit Counseling gave their own suggestions as to what people should resolve to do in the coming year.
Coming in at the very top of the list of suggestions from the executives was saving money, a practice that can help consumers if they find themselves with emergency expenses or suddenly without a job.
“Americans might ask themselves how they paid for their last emergency. If it was with a credit card, that?s a red flag,” the NFCC report said. “A person who cannot afford an emergency is not likely to be able to afford the interest, late charges, and over limit fees that could be associated with adding to their debt load.”
Budgeting was also a suggestion made by CEOs, as was tracking where people spend their money. By keeping a tally of where money goes for 30 days, consumers will have a better idea where they can cut back expenses. They will also be able to better guide their money every month, which could make things easier.
Another recommendation made was for consumers to reduce their debt, though doing so could mean that they have to adjust how they live their lives. Doing so, however pays off in the end as it allows people to eventually save money and reduce stress associated with outstanding loans.
Many Americans have already taken it upon themselves to reduce the amount of debt they carry. According to the Federal Reserve Board, revolving consumer credit – which is mostly credit card debt – fell at an annual rate of 7.3 percent during the third quarter. This continues a reduction trend that started in the fourth quarter of 2008.
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Consumers should consider saving money as a primary goal.
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