The new year is around the corner. It’s the perfect time to make a plan to fix your credit, finances, and get out of debt for good!

2020 isn’t only a new year — it’s also a new decade. Start the next 10 years off on the right financial footing with these tips.

Here’s how to fix your credit and finances:

1. Start by assessing your current state

To set the right financial goals, you need to know where you’re currently standing.

Find out:

• How much income you earn each month.
• How much total debt you carry — including interest rates.
• How much you spend each month.
• How much you save each month.
• What your credit score

From there, you can identify where there is room for improvement.

Some of this data could be obvious. You might already know that you are carrying too much credit card debt, or you were denied a loan because your credit score is too low. But finding out your exact starting position will help you measure your results.

2. Set SMART goals for the year ahead

Once you know your current standing, you can now identify where you want to improve and change. But the way you set those goals can be equally important!

It’s easy to set a goal like “Get out of debt by 2021,” or “Fix my credit score,” but these types of statements are often too vague.

Instead, set SMART goals. SMART goals mean:

S – specific

M – measurable

A – achievable

R – realistic

T – timely

A SMART goal for fixing your credit might be: “Bring my credit score from 500 to 600 by 2021 by paying every bill in full and on time each month and starting credit counselling.”

A SMART goal for getting out of debt might be: “I will pay off all my non-mortgage debt down to $0 by June 2020 by exploring debt consolidation options and finding savings in my budget each month.”

3. Choose your strategies

Your goals are only as strong as the strategies you use to achieve them. The right strategy can depend on your specific situation.

For instance, if you want to fix your credit score, it will be much harder to achieve if you are carrying a lot of debt. Instead, you might look into getting out of debt first.

To do that, you would consider debt consolidation strategies, such as:

• Finding room in your budget and monthly income to pay off your debt.
• Credit counselling.
• A debt consolidation loan.
• Refinancing your mortgage.
• Filing for a consumer proposal.
• Filing for bankruptcy.

Each option has its pros and cons and the right one (or the right mix of options) will depend on your lifestyle!

4. Seek support

You don’t have to go after your financial goals alone. Accountability can be one of the most effective ways to set yourself up for long-term success.

A debt counsellor is a great ally to have at your side. They will help build your strategy to reach your 2020 financial goals and beyond.

They’ll identify where you should start, what steps you should take, when you should take them, the best mix of options for you, and more.

Achieve all of your new year financial resolutions with DebtCare Canada. We’ve helped thousands of Canadians fix their credit and finances and we can help you, too!

Contact us today for a free consultation to start your 2020 planning. Call 1-888-890-0888 or visit www.debtcare.ca.