The holiday decorations have been stowed away, we have sung Auld Lang Syne as we rang in a new year, and now it is time make our 2020 resolution. Rather than picking the same one as in years past, how about trying Debt Dumping? Setting a goal isn’t always easy, it takes commitment and dedication to achieve your financial goal. That is why it is important to set SMART goals.
Your ditching your debt SMART goal:
Specific – Which debt(s) are you going to focus on? Car loans, credit cards, student loans? Having a budget will help identify extra funds you can use to pay down your debt.
Measurable – How will you know if you have reached your goal? How will you know if you are on track to reaching your goal? Develop a method to track your progress. This can be weekly, monthly, or paycheck.
Attainable – Do you have the resources and support needed to accomplish your goals? Do you need to first work on a budget before you set your goal?
Realistic – Is your goal one you fit into your lifestyle and budget? Paying off your mortgage in a year might not be realistic, but paying off credit cards could be realistic?
Time-Based – Can your goal be accomplished in only 365 days? Saying you are going to pay off your debt sometime during 2020 is an ambiguous goal. However, saying you will pay an extra $100 a month on your credit card each month for 6 consecutive months, gives you your deadline goal.
New year resolutions are important. To be successful with your ditching your debt financial goal, remember to be SMART about it. Happy new year and best wishes on your financial goals!