Managing Debt: Strategies for Getting Out of the Red

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If you feel completely overwhelmed by debt, you’re not alone. It can feel like a relentless shadow constantly hanging over your financial stability. Whether you have credit card debt, student loans, mortgage, medical debt, or tax, managing your debt effectively is crucial for organizing a successful financial future. Pond Law Firm is here to guide you through getting out of the red if you have found yourself settled with overwhelming debt. We have proudly provided expert bankruptcy guidance, legal representation, and financial counseling to residents across Mississippi for decades. It is our absolute honor to help our clients find the fresh finish start they deserve. Today, we’re bringing you tips and techniques for getting out from under debt provided by our experienced financial pros. Being proactive and taking action can save you from bankruptcy down the road.

Tips for Getting Out of Debt

The first step on your debt-busting journey is to take a complete stock of all your debts. Pay attention to outstanding balances on credit cards, interest rates, minimum payments, and gather details on any other debt you may have accumulated. Then you can consider your various options.

Debt Consolidation Options

Debt consolidation is one of the first things you can do to manage and eliminate debt – this is where you can combine multiple debts into a single new loan or credit card with a lower interest rate. Not only does this simplify your payment plan and help you keep track of what you owe, but it can also save you vast amounts of money on interest over time. Check into balance transfer credit cards that offer a 0% introductory APR. Then you can transfer your debt on the credit card and use the 0% interest timeframe to pay off and reduce the amount you owe. You could also try personal loans which typically have lower interest rates than credit cards. They also offer fixed monthly payments, which makes managing your debt and working it down much easier. You can also try to get a home equity loan (or HELOC) if you own your own home. You will essentially leverage your home equity to consolidate your debt. The risk here is that your home serves as collateral, making it a risky venture if you are not absolutely positive that you can eliminate your debt. 

Budgeting Tips for Debt Management

Budgeting is an important step of eliminating debt. It all begins with creating a realistic budget that allows you to pay off debt, track your income and expenses, identify areas where you can cut back, and disperse more funds toward debt repayment. Follow the 50-30-20 rule which is where 50% of your income goes to your basic daily needs and essentials like housing and food, 30% goes to discretionary spending for fun and things you want, then 20% of your income goes to debt repayment and savings. This creates a manageable and easily tracked method of paying off debt. Another approach is zero-based budgeting. This is where every dollar of your income is assigned to a specific expense, saving, or debt repayment, leaving no unknowns or guesses on where your money is being used. One other method that works for many people is the cash only approach. This is where you withdraw cash and set it aside for a specific use. This includes bills, daily expenses, savings, repayment, savings, and repayment. Whatever cash you have set aside for discretionary and fun activities are gone when the cash is gone. This prevents you from spending more than you should on discretionary items. You can also apply debt pay off methods that you implement yourself. For instance, you could focus on paying off the smallest balance first to motivate yourself to continue lowering your debt. On the other hand, you could focus on paying off the debt with the highest interest rate so that you save money in the long run.

Financial Counseling for Debt Near Me

Financial counseling, perhaps one of the most effective ways of working out of debt, is where you seek the advice of a financial counselor like those at Watkins & Co. We are experts in our field and provide personalized financial advice based on your specific expenditures, debt, and income. We will help you create a debt management plan and connect you with resources for debt relief. Most importantly, we will help you adhere to your chosen repayment plan to get you the debt relief you so desperately deserve. Once you are out from under the overwhelming debt, we will help you stay on track from that point forward, enabling you to have a strong and secure financial future. To book a financial counseling appointment in Mississippi with Watkins & Co today, simply give us a call or click. We’re here to support you every step of the way and ensure that you get out of unmanageable debt!

How to Maximize Your Tax Refund in 2025

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Filing for taxes can be a stressful and daunting task even in the most straightforward of cases. Instead of losing sleep over filing, keep it stress-free with the assistance of the tax professionals at Watkins & Co.. After over 30 years of experience as a thriving accounting firm in Jackson, Mississippi, the tax pros at Watkins & Co. are your go-to local tax experts. We offer a comprehensive suite of accounting services designed to provide for every accounting need of individuals and businesses in the Jackson area. 

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CPAs for Small Business Startups Jackson, MS

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Starting a business is an exhilarating and potentially terrifying endeavor. As a new business owner, you’ll face a whole host of challenges in every arena from staffing to administrative and financial. With all that in mind, are you debating about using the services of a CPA for your small business startup? In our last article, the professionals at Watkins & Co. discussed five reasons that partnering with a local CPA is a smart move for your company. Now, we’re here to finish up sharing all the benefits of hiring a CPA for your new business in Mississippi.

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5 Reasons Why Small Business Accounting Is Important 

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As a small business owner, you wear many hats and fill many roles. From marketing and sales to operations, you have to rely on yourself for many aspects of business. One area that will pay for itself time and time again is to outsource your accounting. Solid accounting practices are the lynchpin for many small businesses and is the bedrock of your company’s financial health and long-term success.

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5 Ways a CPA Can Help Your New Business Startup

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If you’re in the process of starting a new business in Mississippi, congratulations! That’s exciting news, although in reality, it can come with its fair share of stress. Ensuring all the aspects of your business are accounted for is no small feat, one that must be taken on when you already have a full plate. One major component of a successful business startup is to make sure that you have a solid financial foundation on which to build. A CPA can be an invaluable partner on this journey, providing crucial financial expertise and support so that your business gets up and running smoothly.

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The Importance of Good Small Business Accounting

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Experienced small business owners across America will all agree that proper business accounting can make or break your business. The value of accurate recordkeeping, payroll, cash flow, tax reporting, business analysis, and other business accounting tasks cannot be overstated. For those just starting a new business, it’s imperative to set up your accounting systems for success and ensure that you’re on the right track from the very start. To do so, it’s crucial to know what good small business accounting looks like and what you can expect from following a structured accounting plan

Watkins & Co. has spent decades guiding small business start-ups in Mississippi through the ins and outs of proper small business accounting. The following five factors illustrate how accurate small business accounting plays a crucial role in the overall success and sustainability of any enterprise. 

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Independent Contractor Tax Reporting with Form 1099

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As independent contractors and the businesses that hire them, adhering to guidelines and best practices when reporting taxes is crucial. Staying compliant and properly reporting with the right Form 1099 is an absolute must to remain in good standing with the IRS. Watkins & Co. is here to share some important information on 1099 tax reporting do’s and don’ts.

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Everything You Need to Know About 1099s in 2024

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For those operating businesses where independent contractors or other non-traditional income payments are being made, 1099s are how you will report income paid to individuals or entities during the tax year. The main purpose of a 1099 is for the IRS to track income that falls outside of the scope of traditional taxes. Businesses, organizations, or individuals are responsible for issuing 1099s if they make such income payments. Similarly, individuals are required to file taxes with a 1099 if they made any income that is not reported under a W-2 or other tax reporting form. 

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10 Benefits of Outsourcing Payroll Services in 2024

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The modern business world comes with its fair share of challenges. From smooth operations and budgeting to meeting employee needs, your time and effort as a business owner are in great demand. One way to alleviate some of the burden from your shoulders is to use a quality payroll service. There are various benefits to fully outsourcing your payroll to professionals who do this everyday besides the relief that comes from knowing your employees are in capable hands.

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10 Reasons to Use a Quality Bookkeeping Service

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Quality bookkeeping is one of the foundational pillars of any successful business. Every decision affects your business and keeping accurate and precise financial records is arguably one of the most important decisions you’ll make. Not only does bookkeeping protect your business through the meticulous recording of financial transactions but it also offers the ability to stabilize and grow your company.

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Watkins took one of the biggest headaches in my business and made it simple! Excellent, consistent results.

-Travis – Brandon Mississippi