After the fun and (often) excess of the holidays – whether it’s splurging on spending or sweets – January comes and it means it’s time to ‘pay the piper.’ Whether it’s getting back to a healthy routine of clean eating and exercise or evaluating your overall debt, now is the time to make positive changes, both physically and financially. To help with this, start with these five tips for getting credit lean in 2016.

  1. Assess. Be honest about your spending and saving habits but realize real change is possible. However, like any new regimen, there will be fits and starts but any progress is good. It’s not easy to lose 30 pounds and it’s not easy to lose tens of thousand dollars of debt, but it CAN be done! Take those first steps and set yourself on a finite path to consolidate your revolving debt and set yourself up for success.
  2. Calculate. Examine your store and major credit cards and total all the fees you’re currently paying. The results might surprise you. That one payment that was two days late last June could have very well resulted in a double-digit interest rate hike in addition to a $30 late charge. These penalties are a major source of income for credit card companies, so you need to really evaluate how much you’re spending each month and what is a realistic goal for getting them paid off.  
  3. Research. Get a quote for a loanDepot personal loan via our online rate calculator. You can get a sense of how much you qualify for, your interest rate and a monthly payment based on your choice of a 36- or 60-month payment plan. Remember, you will have your monthly payment deducted each month via automatic withdrawal, so you cannot be late. Your loan will not continue to increase because of additional charges that add to your revolving debt.
  4. Commit. Know that when you have decided to tackle your revolving debt by consolidating, you must be sure not to fall back into the trap of paying minimum and late payments on new cards. If used properly, you can get cash-back and travel rewards that can be a great incentive to keeping you on your path of getting out of debt.
  5. Celebrate. Congratulate yourself for each bit of progress you make. Like losing the first few pounds, keep an eye on how your debt is decreasing each month and make sure to track how you’re using the money not going to credit cards to save, invest, or increase your payments for greater progress, etc.
Enjoy the holidays now knowing there are concrete steps you can take this month to set yourself on a path to financial discipline, which will reward you throughout the year.

Call today for more information.


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