Font ResizeLAS CRUCES - January is a tough month. After Halloween, Thanksgiving, Christmas and New Year's, and all the presents, parties and food that go along with those celebrations, January can loom dark and cold.
Of course, the NFL playoffs can ease the blues nicely for some of us, but that, in turn, can be offset with the realization that we can no longer put off our New Year's resolutions, and, gulp, the shopping bills from November and December will start to come due.
I'm kicking myself this year because, even though I often talk to financial planners, I was lured into the rocky shores by the siren's call of a brand-new credit card.
Like the Ancient Mariner, I have a cautionary tale to spin. But I'll keep mine brief: Unless you have extreme self control and/or use your credit card as part of a meticulously planned budget, keep the dang plastic at home while Christmas shopping.
With help, I paid off all my credit cards years ago and had never reapplied for one. But with a potentially expensive health-related family situation looming, I applied for a new card to have for emergencies. Instead, I ended putting this present and that gift etc., etc. on the card. I never spent much each time, but when I finally decided to add up the receipts, I was very chagrined.
Financial irresponsibility had claimed another victim.
I'll recover from this, but it's a lesson we all can heed. And this is a great time of year to get started. While we regret actions of the past, the start
The folks at the Consumer Credit Counseling Service of YWCA tell me that January and February are often their busiest time as people try to dig out of the holiday hangover and also change their ways.
Dolores Rosell with YWCA Credit Counseling has told me you should ask yourself a question with every purchase: "Do you need it or do you want it?"
She suggested you examine your purchases and realize how much of a difference saving even $10 per weekday, either by packing your own lunch or passing up morning coffee and pastry, can make.
"If you do that and nothing else, that's $50 a week and $200 a month. So you're saving about $2,400 a year," Rosell said. "That adds up."
Las Cruces accountant Vivian Moore teaches credit counseling classes. She recommends that whether you are trying to dig yourself out from under debt, prevent the accumulation of a lot more debt or both, a good place to start is with an understanding of where your money is spent.
"Always start with a budget, that's a typical New Year's resolution," Moore said. "You need to know how much (money) is coming in and how much has to go out. First you need to know where you've been in order to know where you've got to go."
So start keeping a record of everything you spend and examine it regularly. You might be surprised at what you find.
"(People will) go back and look at (the diary) and say, 'Am I really eating out that much?'" Moore said.
Sally Herigstad, author of the book, "Help! I Can't Pay My Bills," reports on her website - sallyherigstad.com - that "most people dread the word 'budget.' It sounds an awful lot like 'diet.'" And, like diets, many people have tried them and failed.
"To create a budget, add up what you're spending now and how much income you can expect. Then, decide how much you want to spend in each category," Herigstad writes.
Brook Stockberger can be reached at (575) 541-5457
Pay down debt
You can seek help from a professional. There is free help available at places like the YWCA Credit Counseling office in Las Cruces, which can be reached at (575) 532-1222. Check out the Internet or phone book to find other areas of help in town. Here are some tips for dealing with debt:
•Create a realistic monthly budget for your expenses.
•Pay off the balance on the credit card with the highest interest rate first, unless the balance on any card exceed 50 percent of your credit limit.
•Learn to use cash instead of credit cards.
•Use direct deposit for your paychecks.
•Cut down on your discretionary expenses.
•Avoid borrowing money to get out of debt, especially consolidation loans.
•Contact your creditors and try to work out repayment plans.
•Become a savvy shopper and look for deals, bargains, and savings.
Source: allbusiness.com
