Manage Debt in 2023
6 Tips to Better
The new year is upon us. It’s time to dive head-first into those new year’s resolutions you’ve been brainstorming. Your credit is in your hands, and it’s up to you how you build it.
It’s fun to get swept up in the spirit of the occasion — but it’s also easy to get carried away. Following a hectic holiday season, maybe you spent a little extra on gifts from your loved ones’ wish lists, decorated your home or space to perfection, or took advantage of one too many year-end sales; you can quickly find yourself on the spendy side of the season. Increasing debt and expenditures during the holiday season could place a burden on your credit card accounts and lead to exceeding your ideal credit utilization ratio — an important factor in your credit score.
1. Create a Budget
Extra points if you put pen to paper for this one. Sit down and map out exactly how much discretionary savings and income you plan to spend and exactly what you want to spend it on. This can include rent, groceries, a gym membership, subscriptions and anything else you know you need to allocate funds for.
2. Track Transactions
As the month goes on, track your spending along the way so you don’t exceed your credit utilization ratio; that way there are no surprises waiting in your receipts (or in your credit score).
4. Be Realistic
If you have some debt from the holidays, don’t panic. Think about why it matters to you to avoid the accumulation of more debt and set some realistic deadlines for paying it off, along with a few mini goals along the way. A little bit goes a long way!
5. Set Up Automatic Payments
Something that can contribute to the stress around debt is remembering all that’s required in paying it off. Get ahead of your debt by arranging automatic withdrawals that line up with your income and spending. Setting up automatic payments with your bank crosses one thing off the list, so you can rest easier at night.
6. Revel in Your
New Year’s Resolution
It’s always a good time to start building good credit. If you can pay down any debt in the spring, summer and fall, it can help build, rebuild and manage your credit moving forward and relieve you of the stress later on. Your future will thank you.
For more on how to build and manage your credit
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Whether your resolution is to budget better, spend smarter or simply spend less in general, we’ve got you covered.
But there’s no reason to let the holidays wreck your credit. It’s a new year, and a fresh start awaits you. Fannie Mae, the housing finance company, is sharing some tips to help you stay within your budget and reduce debt this year – and for years to come. Whether your resolution is to budget better, spend smarter or simply spend less in general, we’ve got you covered.
3. Don’t Be Rash
Stick to your budget. If you find yourself spending a little extra on a gift or a special trip, be sure to make sacrifices elsewhere. If your spending habits tend to climb in nonessential expense areas, try to shake up your spending in a way that’s smarter for your big picture.
In beginning to act on this year’s credit resolutions, you can set yourself up for success down the road. Take advantage of the new opportunities the new year brings and the contagious energy to challenge yourself with ambitious goals. Good credit can be built one piece at a time, and one small change can spark something long lasting. To learn more about Fannie Mae and credit education, click here.
Good credit can be built one piece at a time, and one small change can spark something long lasting.
But there’s no reason to let the holidays wreck your credit. It’s a new year, and a fresh start awaits you. Fannie Mae, the housing finance company, is sharing some tips to help you stay within your budget and reduce debt this year – and for years to come. Whether your resolution is to budget better, spend smarter or simply spend less in general, we’ve got you covered.
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3. Don't Be Rash
Stick to your budget. If you find yourself spending a little extra on a gift or a special trip, be sure to make sacrifices elsewhere. If your spending habits tend to climb in nonessential expense areas, try to shake up your spending in a way that’s smarter for your big picture.
In beginning to act on this year’s credit resolutions, you can set yourself up for success down the road. Take advantage of the new opportunities the new year brings and the contagious energy to challenge yourself with ambitious goals. Good credit can be built one piece at a time, and one small change can spark something long lasting. To learn more about Fannie Mae and credit education, click here.