I’ve been noticing an interesting trend with my clients. In January of each year, I’m always busy with all the clients who made it their New Year resolution to get out of debt. Like most New Year’s resolution, by February or March, it’s worn off and it’s easy to go back into full denial mode. (Incidentally, I’ve made the same New Year’s resolutions for the past 8 years - quit drinking coffee and exercise more. I’m still drinking coffee, although not as much.)

Around April, I notice what I call the Uncle Sam Debt Buster Syndrome. It’s where the client knows she has a tax refund coming and thinks that she can use the money to get out of debt. I think logically, the client knows this does not make any sense, but it’s just that moment of relief knowing there is some money coming her way.

Unless you have a very small debt or a very large refund that will make a significant dent in your debt, maybe you should consider saving your tax refund for something else aside from paying Chase their 30% interest. It’s so easy to not face reality and just pretend everything will be okay as long as you can make your monthly minimum payment. Make 2011 the year to come up with a way to get out of debt once and for all.