Now is a good time to look at your finances

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We are off and running in the early days of 2025, so today’s column will be short and sweet.

I think many of us tough out difficult financial situations until we are through the holidays. We put on a brave face and do our best to make everyone’s holiday season fun and festive. Then January hits, as does reality when we look at our bills and our account balances.

If you are feeling overwhelmed with your financial commitments and don’t know where to start, a conversation with your mortgage professional might be a good place to start. If you have equity in your home it may make more sense to remortgage and consolidate your consumer debt.

My advice is to try not to do that if you can avoid it, but feeling like you shouldn’t and then falling behind with your credit cards and other loans will do more damage to your financial health in the long run.

Credit counselling organizations are already advertising heavily to this target audience. Clients sometimes think (or are led to believe) this is an easy solution and better for their credit long-term. Not all credit counselling agencies are created equal and I can’t count how many clients continue to deal with the fallout from these arrangements years down the road.

If you have tried to refinance in the past and been told no, it may be worth taking another look at this approach. Lenders change their policies and your situation likely has changed as well. Rates have come down about a full percentage point from this time last year.

Going into January can feel a bit heavy after the holiday celebrations and I encourage you to take a close look at your finances and set yourself up for a successful year.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.