Happy New Year

Happy New Year! I know many people did not accomplish all the things they wanted to this past year. Today is the day to start thinking about ways to change old habits. One old habit many of us have is getting into debt.

Today is the first day on the road to financial freedom.

Don't dwell on the financial mistakes you made last year. Think about how you can change your spending habits, eliminate debt, create a spending plan for yourself and avoid the Christmas Shopping blues your felt from overspending last month. Here are 5 ways to have a prosperous New Year:

1. Stop spending. Don't spend money you don't have. This will only put you further in debt.

2. Take inventory. Write a list of all of your monthly expenses and debt and write down you monthly income (take home). If you have any money left over use that to pay down your debts. If not, find other ways to reduce your expenses and gain extra money to pay down your debts.

3. Reduce expenses. Find ways to reduce expenses to help pay down your debts. Catch public transportation or carpool to work. Use coupons or shop at wholesales stores. Have a yard sale or donate unused items to charity and write the amount off on your taxes.

4. Credit Card Usage. Use your credit card for emergencies only. Don't use your credit card to purchase gas, food, clothing, etc. When using a credit card instead of cash you end up paying 112% more than the item is worth after finance charges and other fees associated with credit card.

5. Educate yourself. Educate yourself about credit and your credit rights. Read as much information as you can about credit cards. Start by reading the credit card agreement or disclosure that was sent to you when you first received your credit card in the mail. If you can't find it call you credit card company and ask them to send you one. Read the agreement carefully to find out what fees you could be charged, the grace period and other important information. You can also buy books such as my self-help book on credit repair entitled, "How to Get Out of Debt: Get an "A" Credit Rating For Free" by Harrine Freeman at Amazon.com, Barnesandnoble.com, Waldenbooks.com and Booksamillion.com to help you repair your credit and get out of debt.

Good luck to you. Make this year your year to become debt free!