Checklist: Limit Debt

Things to do this weekend: It’s the peak of the holiday spending season and a good time to remind ourselves how much incurring debt can cost us. A few simple steps now can help ensure a brighter financial future in 2000.

* Today: Add up how much you’ve paid so far this year in nondeductible interest, particularly on credit cards. If you keep your finances up-to-date on software such as Quicken or Microsoft Money, this should be a fairly easy task; if you don’t, you need to gather up your statements for the last year and add the figures by hand. If the figure is zero, or close to it, give yourself a hand and take the weekend off. If not, read on.

* Saturday: Most financial planners say consumers should aim to eliminate nondeductible debt completely. With your own figures to provide motivation, investigate ways to reduce your debt. Several Web sites offer debt-reduction planners; you can try Quicken’s version at https://www.quicken.com/saving/debt. If you’re having financial problems because of your debt, consider contacting your local nonprofit Consumer Credit Counseling Service. (The number is in your local phone book, or visit the parent organization at https://www.nfcc.org.)

* Sunday: Switching to a lower-rate credit card can help many consumers speed up their debt-repayment plans (as long as they don’t use the lower rate as an excuse to spend more or reduce their payments). Two Web sites to check include Bank Rate Monitor at https://www.bankrate.com or CardWeb at https://www.cardweb.com. Check all the fine print; the best deals are often fixed-rate cards, rather than cards with low teaser rates that rise significantly after a few months.