Wednesday, January 9, 2013
Today in Money Matters, maybe your new year's resolution was to get out of debt in 2013 and that is a worthy goal.
Steve Bucci of Bankrate.com says there are a number of practical moves you can make to avoid problem debt this year.
Here is a portion of his list:
1. Develop a spending plan. If you don't have a plan for your money you will end up following someone else's plan. You need to be in control of what you spend and when you spend it.
2. Save for emergencies. A savings plan is a must. Your goal should be to save 6 to 12 months worth of living expenses - not what you earn each month, but what you spend each month. Prepare for the unexpected.
4. Don't try to borrow your way out of debt. Restructure your spending instead of your debt, and make a concerted effort to pay down what you owe as quickly as possible.
5. Never co-sign on a loan - ever. This is a reason why a professional lender won't approve this loan, so why should you? Lend your support, not access to your credit.
And as a financial advisor once told me, if you loan money to a relative, don't expect to get it back.
These are just some of the suggestions.
For a complete list and a link to the article go to kake.com and click on Money up at the top, then look for Money Matters.