According to a recent poll by Money magazine and ICR, an estimated 77 million Americans say their New Year's resolution is financially related.
Yet, only one in four people who have made such promises actually keep them.
With help from "Good Morning America's" financial contributor Mellody Hobson, though, you can whip your finances into shape.
First and foremost, Hobson says, you should pay down your credit card balance. Unless you can escape the 19 percent interest rates and the mountain of credit card debt you are under, it is virtually impossible to get ahead.
The average U.S. household has more than $9,100 in credit card debt. Organize your statements and start paying off those with the highest interest rates first.
Set a realistic goal that you can achieve. Resolve to pay off only one card in 2007. Paying down debt can be contagious. Eliminating one card will likely encourage you to start working on another.
Choose paper instead of plastic in 2007 to make cash king. Although this may not be easy, there is no better way to stay on budget and avoid making purchases that you cannot afford.
All too often, we find ourselves walking around with no cash and putting the smallest things on our credit cards -- from a cup of coffee to a tube of toothpaste. Then we get a delayed dose of sticker shock when the credit card bill comes. This is how the cycle of debt starts, and most everyone can appreciate how difficult it is to get out of it.
One of your financial resolutions should be to automate all of your finances. Replace your check book with a computer and mouse. Everything from paying bills to getting paid to investing should be done via the Internet. Automate your investments and bills. Sign up to have your credit card debited directly from your account, a surefire way to avoid costly late fees.
Automating your investments is the best way to save more, because it is easier to save and invest if you never actually touch and feel the money. Let the Internet eliminate your choice of spending or investing. Invest.
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