Are you ready to keep yourself debt-free in 2022? The new year is a restart time for many, as we plan resolutions and goals, so it’s the perfect time to get clear on your budget and “invest” in your financial wellness. Here are a few ways you can avoid debt as you enter 2022.

Get Clear On Your Budget

Having a handle on your budget is the best way to avoid taking on more debt. First, consider your basic needs, your debt ratio, and savings accounts to get a clear picture of where your money is going and where it needs to go. Next, you can audit your account and dive into your spending habits, using that data to develop a realistic budget you can stick to. 

Avoid Excessive Holiday Spending

Prepare for the new year now. The holidays are an easy time to dig yourself into deeper debt with trips, gifts, and gatherings. Have a dollar amount you feel comfortable spending, and don’t go over it. You can always DIY gifts and find other ways to give (without going into debt).

Pay Off High-Interest Debts First

Paying off high-interest debts is an investment in your future. However, high-interest debts will keep you in debt, so it is essential to focus on eliminating this debt first or don’t take out any additional high-interest debt. 

Create A Healthy Financial Environment

We are bombarded with ways to spend money and can go further into debt every day. Consider unsubscribing from advertising sales emails, avoid social media accounts that have you frequently pressing the buy button, and educate yourself with financial advice and content that helps you reach your goals faster. You can also get creative and make simple swaps, like preparing your coffee at home, sticking to cash, and avoiding your shopping triggers.

Debt-free is an excellent goal and worth the effort and self-restraint it takes to have a healthy relationship with money. If you are struggling with debt and considering bankruptcy, email today to determine if that is the best route for your specific needs.