Orlando, Fla. (Ivanhoe Newswire) — the new year is supposed to feel like a fresh start but for many Americans, money stress is following them into January. A new survey shows one in three people say their finances have gotten worse over the last year, and 40 percent cut spending when their expenses outrun their income. But even small changes can make a big difference.
When bills start piling up after the holidays, money stress can hit fast!
About half of U.S. adults worry about money every day and 43 percent struggle just to pay their bills.
One of the fastest fixes? Check your credit report. A consumer reports study found 27 percent of people had errors, including wrong late payments and debts that weren’t theirs.
You can review yours for free at annualcreditreport.com.
If holiday spending left you with high-interest debt, a zero-percent APR card can help. Many offer 12 to 21 months to pay it down interest-free.
More quick new-year money fixes — set up an auto-save of just 10 dollars a week to build a safety net. Call your providers. U.S News says many internet, phone, and insurance bills can drop just by asking. Try a weekly “no-spend day” to cut impulse buying by as much as 30 percent. Use the 48-hour rule for any non-essential purchase. Most impulse urges disappear in two days. And before canceling a subscription, ask for a “retention offer.” Many streaming and app services will give you 20 to 50 percent off to keep you as a customer.
Also, try rounding up every purchase to the next five dollars and move the difference to savings. Many apps can do it automatically, and small rounded-up amounts can add up to hundreds by year’s end. Another strategy experts recommend to start the year strong is an “all-cash diet.” You withdraw a set amount of cash for the week and when it’s gone, you stop spending. Just like a food diet, it forces you to make choices, cut impulse buys, and leave the credit cards in your wallet.
Contributors to this news report include: Cliff Tumetel, Producer; Bob Walko, Editor.
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Sources:
https://www.annualcreditreport.com/index.action
https://happybank.com/resources/reduce-your-spending-with-an-all-cash-diet/
