Are you satisfied with the financial decisions you made in 2014? If you’re not so sure, this is a good time to resolve issues or make some changes for 2015. The Pennsylvania Institute of Certified Public Accountants offers these tips on the best ways to avoid common pitfalls.
Mistake #1: Out-of-control debt
Among Americans with credit cards, the average balance in the second quarter of 2014 was $5,596, an amount it would take most people months or years to pay off. Every month those balances remain outstanding, the more the interest charges add up. If you’re wrestling with high credit card balances, try using cash only for your purchases so you don’t run up any more debt. Pay as much as you can each month on your credit card bills, and consider shifting your balances to lower-interest accounts. In addition, regularly check your accounts to be sure there are no fraudulent purchases or simple mistakes that are hurting your credit score.
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