In the News - January 2008
Make a debt-reduction resolution pay off
MURFREESBORO, Ark. - Paying off debt is the No. 2 goal for New Year's
resolutions according to one survey, making up 52 percent of all finance-related
resolutions.
According to MyGoals.com, the rate of respondents who want to pay off debt
doubled from last year's 26 percent. Weight loss remains the top goal, according
to the survey.
Robbie McKinnon, a Pike County agent with the University of Arkansas
Cooperative Extension Service, offers sensible steps to accomplishing this
important goal.
"If you want to pay off debt, you're not alone. Many people face a financial
crunch some time in their lives," McKinnon said. "Whether the crisis is caused
by personal or family illness, the loss of a job, or overspending, it can seem
overwhelming.
"The good news is that often, debt can be overcome," she said. "What will
work for you will depend on your level of debt, your level of discipline, and
your prospects for the future.
The first step toward taking control of your financial situation is to do a
realistic assessment of how much money you take in and how much money you spend.
Start by listing your income from all sources.
Next, list your "fixed" expenses - those that are the same each month - such
as mortgage payments or rent, car payments, and insurance premiums. Then, list
the expenses that vary - including entertainment, recreation and clothing.
Writing down all your expenses, even those that seem insignificant, is a
helpful way to track spending patterns, identify necessary expenses, and
prioritize the rest, McKinnon said. The goal is to make sure you can make ends
meet on the basics: housing food, health care, insurance, and education.
Regardless of the resolution that you make on New Year's Day, you may
remember that sometimes the resolutions are not held in your attention long
enough to accomplish them. To keep the resolution, McKinnon recommended
following three simple steps:
1) Be committed. You must think through what you want to change and commit
yourself to the long-term process it usually takes to achieve change. You then
need to come up with a realistic plan to help you reach your goals..
2) Be prepared for setbacks. Don't think of them as complete failures, don't
dwell on them, and don't let them make you give up your goals. After a setback,
try to get back on track to reach your objective.
3) Track your progress. Motivate yourself by celebrating your successes and
by getting positive feedback from supportive family and friends. A good approach
is to evaluate yourself every week or two weeks. However, don't over-monitor
yourself by doing a self-assessment every day. That's just likely to end in
frustration. Don't compare yourself to others. Accomplish your goal in a way
that's best suited to you.
For more information on managing finances, visit
www.uaex.edu. The Cooperative Extension Service is part of the U of A
Division of Agriculture.
January 4, 2008
Media Contact: Lamar James
Extension Communications Specialist
U of A Division of Agriculture
Cooperative Extension Service
(501) 671-2187 or (501) 753-0207
ljames@uaex.edu
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