Every new year, we often ask ourselves what we are changing or improving this year to achieve a more meaningful life. This is what we call, New Year’s Resolution, it often motivates us to reflect on different aspects of our lives, and among them is finances. Hence, your loan resolutions.
One area of improving our finances is developing healthy strategies around borrowing and loans. Though loans allow convenient access to big sums of money for major expenses, unmanaged debt can become a long-term financial burden.
This 2024, empower yourself to take control of your finances with these 8 loan resolutions.
Loan Resolutions: Importance of Having a Loan Management Plan
Based on research commissioned by Amsterdam-based fintech Backbase and conducted by Forrester Consulting, 70 percent of Filipino consumers face challenges in managing their debt, making it their foremost financial hurdle. This percentage surpasses the average ratio of debt-struggling consumers across nine surveyed Apac markets, which stands at 49 percent.
The study underscores the distinctive prominence of debt-related concerns in the financial landscape of Filipino consumers, reflecting a noteworthy contrast with their regional counterparts.
The effectiveness of having a loan management plan is clear since it provides an organized strategy for addressing and overcoming the primary financial challenge encountered by the vast majority of Filipino consumers.
Individuals may address debt-related difficulties more successfully by including a strategic plan in their financial resolutions, paving the way for increased efficiency and financial well-being this year.
Improve Your Finances: 8 Empowering Loan Resolutions for 2024
This year, equip yourself with financial education and lean on smart debt strategies to pave the path toward financial freedom. The time is now to create positive financial habits to become empowered in your borrowing and achieving your financial goals.
Hence, here are eight empowering loan resolutions to practice in 2024:
1. Strategic Debt Reduction
“I will strategically reduce and manage my debts to achieve financial freedom.”
Doing so includes evaluating your outstanding debts, prioritizing high-interest loans, and developing a plan to pay them off systematically. Focus on debt reduction effectively to free up financial resources for other goals.
2. Invest in Financial Education
“I will invest time in expanding my financial knowledge to make informed loan decisions.”
It’s essential to increase your financial literacy. To make informed decisions, you must first understand the terms, interest rates, and loan structures. This knowledge is essential to getting better loan terms and properly managing your finances.
3. Maximize Income Sources
“I will explore and maximize additional income sources to boost my financial stability.”
Look for ways to increase your income. This could include starting a side business, freelance work, or investing. Additional revenue can assist you in meeting your financial goals and reducing the stress of loan repayments.
4. Emergency Fund Strengthening
“I will strengthen my emergency fund to deal with unexpected financial challenges without solely relying on loans.”
Build an emergency fund that can cover three to six months of living expenses. A fully equipped emergency fund acts as financial support, reducing the need for taking on more debt in the case of an emergency.
5. Negotiate Loan Terms
“I will proactively negotiate loan terms to secure favorable conditions.”
You should not hesitate to negotiate with lenders. Whether it’s interest rates, repayment periods, or fees, explore opportunities to improve the terms of your loans. Lenders may be open to negotiation, especially if you have a good payment history.
6. Regular Financial Check-ups
“I will conduct regular financial check-ups to assess and adjust my loan and financial strategies.”
Plan to assess how you’re doing financially on frequently. Examine the status of your loan repayment plans, make any budget adjustments, and look for areas for optimization.
7. Automate Savings for Loan Repayment
“I will set up automatic transfers to a dedicated account for loan repayment, ensuring consistency and discipline in meeting my financial obligations.”
Automating your loan repayment savings helps you stay disciplined in meeting your financial obligations. You prioritize loan payments, limit the danger of missed deadlines, and build a consistent strategy for debt reduction by setting up automatic transfers.
8. Build a Long-Term Financial Plan
“I will create and follow a comprehensive long-term financial plan to achieve my financial goals.”
Create a comprehensive financial plan that incorporates both short- and long-term objectives. To construct an effective financial plan, consider saving, investing, and debt reduction techniques.
By adopting a strategic and proactive approach to debt management, increasing your financial literacy, diversifying your income streams, careful budgeting, expertly negotiating loan terms, automating payments for consistency, and crafting a comprehensive long-term plan, you will achieve not just financial freedom but enduring stability.
The key elements to unlocking this financial empowerment lie in your unwavering commitment to financial discipline, a persistent pursuit of consistency, and crafting a comprehensive long-term plan.
Empowering Your Loan Resolutions with Vidalia LC
At Vidalia Lending Corp., we offer loan products and services that align with these financial resolutions. Our loan products can strategically reduce your high-interest debts into one manageable payment.
We will give you access to funds so you can seize financial opportunities when they arise. Our team can negotiate terms and interest rates on your behalf to secure the best loan for your needs.
As you work towards financial freedom in 2024, you can rely on us for the loan products that empower you to take control of your finances. Apply Now!
