It’s the last month of the year…..DECEMBER! Many people use this month to plan and prepare for the new year. This could mean a number of things: cleaning out closets, organizing your house, shedding the holiday pounds, etc.
What about getting your finances in order? For those of you may have debt that you are trying to pay off; this is the perfect time to do so.
Debt reduction is an important way to start the journey to financial freedom. According to myfico.com; the amount of debt owed is about one-third of your credit score.
Why should I try to pay a debt off at the end of the year? Glad you ask! December is the month where debt collectors are trying to get debts off their accounting books before year-end. This is the perfect time to negotiate debt to pay off! For example, you have a $500 hospital bill that was turned over to a debt collector. There is a great possibility that you can negotiate to pay the debt off for 50% of its value. (meaning you can pay the debt off for $250!) The key to this is not only paying off the debt, but also having the debt collector remove it from your credit report. Your credit score can increase by at least 20 points by doing this.
Debt Reduction is important because you do not want to spend your hard-owned money trying to give it creditors. You want to enjoy the money that you worked hard for, right?!
Want to learn more about credit? Join me on Saturday, December 5th at the Rainbow Push Headquarters (930 East 50th Street, Chicago, IL) for this information and more life-changing information about improving your finances. I hope to see my DIVAS this Saturday! Let’s get our financial house in order before 2016!