It’s that time of year again when we vow to make improvements in ourselves – lose weight, stop smoking, get fit. But what about our finances? If the holiday season left you with some unwanted debt, it’s time to think about getting fit financially.
If you charged more on your credit card than you had planned, you’re not alone. The following strategies might make paying those balances a little easier:
- If your credit card balances are quite high, you might consider dipping into your savings to pay off the entire balance. The interest rate on your credit card is most likely much higher than the interest you are earning on your savings. Make a conscious effort to repay the money to your savings account, though.
- Property owners might also consider taking out a home equity loan to pay off credit card debt. This option also offers the incentive of a tax deduction.
- If you can’t pay off the balance on your credit card all at once, consider transferring to a card with a lower balance. Comparison shop for cards with lower rates.
- In order to avoid future overspending, you might consider asking your bank to lower your credit limit.
- Try to trim some extra expenses from your budget. Bring a brown bag lunch to work or rent your videos from the public library. Eat out a few times less each month. Skip the January sales – If you don’t really need it, it’s not a great deal!
- If you find that your debt is unmanageable, consult a professional.
Take a good look at your finances. There are most likely little ways that you could be saving more money. Consider increasing your contributions to a 401(k) or IRA retirement account, round up your mortgage payment each month or increase your car insurance deductibles. These all result in substantial savings.
Think about your future. If you have investments, will they be productive enough to help you meet your goals? What level of risk is appropriate for your situation? When it comes to retirement, a little planning can go a long way.
MHN can help
MHN can help with referrals to certified financial planners who can assist you. As part of its Employee Assistance Program (EAP), MHN offers Work and Life Services to save members time, money and hassle.
MHN’s specialists offer phone consultations and referrals for financial and legal matters, for identity theft recovery, and for issues related to daily living, childcare or eldercare. MHN’s member website includes a full library of educational articles, along with searchable directories for childcare and eldercare, legal tools and forms, financial calculators, and interactive e-learning programs.
To learn more, please visit www.mhn.com, call 1-800-327-7526 or email firstname.lastname@example.org.
This article is for informational and self-help purposes only. It should not be treated as a substitute for financial, medical, psychiatric, psychological, or behavioral health care advice, or as a substitute for consultation with a qualified professional.
Managed Health Network, LLC (MHN) is a subsidiary of Health Net, Inc. The MHN family of companies includes Managed Health Network, MHN Services and MHN Government Services. Health Net and Managed Health Network are registered service marks of Health Net, Inc. or its affiliates. All rights reserved.