During the run-up for the biggest holiday in the US – Christmas, it is pretty easy to brush apart all the debt worries that you were facing. You have so many things to plan for, presents to buy, dinner to cook and New Year drinks. But now as we are all set to welcome the New Year, 2018, it’s high time we start facing the facts. Are you in your overdraft? If the answer is yes, then you’re in debt. In case you’ve reached the overdraft limit, you’re on the threshold of debt. As soon as you enter the New Year, your credit card bills will come down to haunt you.

If you wish to pay off your debts forever, here are few steps that you can take. In case you have got more debt than you can handle, you can even contact a debt planner. Nevertheless, before seeking professional help, here are few steps that you can take on your own.

• Determine your debts

To start with, you will require identifying your debts, including the overdraft. You have to make sure you know the amount that you’re paying on the fees, the interest rate, and the principal amount. You can this way prioritize what you need to pay off. One of the best ways in which you can do this is by taking a quick look at your credit report.

• Reconsider your expenses

In case you think of sorting out your debts, you have to again focus on spending less amount and paying back more. Do you think you are a big spendthrift? If it is so, then what is the item on which you’re spending cash? Did your income suddenly drop or did you make a small error due to which your penalty fees soared out of control?

• Draw a budget and follow it

Take a close look at your bank statements and know where you can cut down on. Once you get to know these, rethink your habits of making expenses. You can even install financial apps to manage your expenses.

• Negotiate with your lenders

If your debt accounts are delinquent, you can definitely speak to your lenders. In case you owe money on mortgage loans, the lender might agree on some improved way of repaying your debt amount.

• Choose a debt management plan

If your debts are getting too stressful, you might require seeking third-party help. Sign up with some debt management plan where you have to pay a fixed amount every month. However, don’t just sign up with anyone who offers you a plan. You have to make firm decisions about your debt management plan.

Therefore, now that you know how you can welcome the New Year with a newly adopted debt-free attitude, you should take into account the above-mentioned tips and advice offered by the experts.

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