subject: Spring Has Arrived Clean Your Finances In 5 Easy Ways [print this page] Spring has arrived with a bangSpring has arrived with a bang. It is the time to polish the windows, clean the carpets, scrub the floors, etc. It is also the perfect time to clean and organize your finances. Read along to know about 5 ways in which you can spring clean your finances.
Clean your finances in this spring
Spring has arrived with daffodils and marshmallows. Like most of the people, you may have been caught up with the spring cleaning frenzy by now. After all, a fresh and clean house can help you lead a healthy life throughout the year.
Just as you use all your energy in cleaning your house, your finances ought to be scrubbed and cleaned too. Here are the 5 ways in which you can clean up your finances during spring.
1. Sort and shred the documents: If financial papers are coming out of your filing cabinets and closets, then it is time to organize them carefully. Taxpayers need to keep documents of income, expenses, deductions claimed on their income tax returns in the past few years. Contact your tax consultant and ask him about the documents you need to keep and discard.
If youre not good at managing papers and documents, then it is better to go paperless. You can opt for online payments and statements. This may help to cut down the clutter.
2. Protect your important documents: You can keep your important financial documents such as credit card agreement, insurance policies, stock certificates, etc. in a fireproof safe box. Inform your spouse or a close family member about it.
3. Take care of your debts: Gather all the financial documents and have a close look at them. Go through your credit card statements and find out how much you owe. List all the credit cards and calculate how much you owe on the each plastic card with interest rate. Devise a plan to pay off the credit cards.
You can opt for debt snowball or debt avalanche method. In the first method, you concentrate to pay off the card with smallest balance first. While in the second method, your goal is just the opposite. You aim to pay off the cards with highest interests.
4. Close accounts or consolidate debts: If youre finding it difficult to keep track of multiple credit card bills, savings accounts and investment accounts, then it is best to close some of them.
You can consolidate all your credit accounts into a single one with the help of the qualified and reliable debt consolidators. They can help you consolidate all your accounts into an affordable monthly payment easily. You can easily get help with debt problems from them. So, it will be easier for you to manage your debts.
5. Look for better deals: A little bit of homework can help you get lower rate on your credit card, home loan, automobile loan, etc. If your credit score is good, then the credit card company may agree to lower the interest rate on the plastic card. A good payment history can help you qualify for reduced rates.
The current mortgage interest is record low. You can refinance your existing mortgage with a low interest loan. This will help you reduce the interest rates and monthly payments to some extent.
Lastly, you can set up an automatic payment system in your checking account. This will help you make regular payments on your monthly bills. You wont miss out your credit card bills or mortgage payments.
by: Jason Holmes
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