As the year draws to a close, it is a good idea to consider what you would like to do in the coming year. There are many concerns for the New Year with regard to credit, including the fact that some credit card companies (like Citi) are increasing interest rates and that FICO is rolling out a new credit score formula. And, of course, identity theft always remains a concern.

New Year’s resolution: debt reduction

It is common to make New Year’s resolutions this time of year, and one of the best resolutions you can make is one of debt reduction. Use this as an opportunity to review you personal finance situation and consider your debt. Debt reduction will provide you with a number of benefits:

  • More money in your pocket – instead of enriching credit card company fat cats with your interest payments.
  • Better credit score.
  • Sense of accomplishment when the debt is paid off.
  • Less money stress in your life.

Make 2009 the year that you start your journey on the road to aggressive debt reduction and eventual elimination.

Happy New Year!