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4 Ways To Reduce Your Debt In 2023


You might be young enough that you can still stay up until midnight on New Year’s Eve and almost every night except the ones when you have to get up early for work the next morning, but you have been an adult long enough that setting overly ambitious New Year’s resolutions is a recipe for disappointment.  It is reasonable to be wary of resolving to pay down your debts by a certain dollar amount by the end of 2023, because so many factors beyond your control will influence the amount of debt you will actually be able to repay.  Instead, you should focus on things you can control.  These four New Year’s resolutions will help you understand your financial situation, which is the first step toward improving it.  When you are ready for professional advice on how to achieve your financial goals, contact a Miami debt lawyer.

Keep Track of Your Spending

Instead of making a budget, which is a plan for how much you want to spend, simply track how much you earn and how much you spend.  Seeing the numbers on a spreadsheet or on paper will be enough to help you reduce avoidable expenses.  You may be surprised by how much you spend at Starbucks and McDonald’s in a week, enough to make you invest in a bag of ground coffee and some supermarket brand frozen French fries.  Seeing the numbers can help you set small goals and achieve them.  If you paid $20 above the minimum payment on your credit card this month, you might be able to pay $30 above the minimum payment next month by making minor adjustments to your spending.

Examine Your Credit Report

As time-consuming as it is, it is worthwhile to get a copy of your credit report and read it in detail.  You might find errors, such as payments you already made that are still showing as unpaid or bankruptcy filings that are so old that they should no longer appear on your credit report.  If you notify the credit reporting bureaus, they will correct the errors, which will give your credit score a slight boost, enabling you to qualify for lower interest rates on credit cards and consumer loans.

File Your Taxes at the Beginning of Tax Season

Tax debt is notoriously stubborn.  You cannot discharge it in bankruptcy, and only in extraordinary circumstances will the IRS settle your tax debt for less than what you originally owed.  It is worthwhile to pay your taxes well before April 15, whether or not you get a tax refund, because doing so enables you to avoid incurring interest and penalties.

Work With a Debt Lawyer to Build a Debt Reduction Strategy

Once you have a realistic view of your debt situation, it is time to talk to a lawyer to find your way out of it.  A South Florida debt lawyer can help you find long-term solutions to your debt problems.  Contact Nowack & Olson, PLLC in Miami, Florida to discuss your case.



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