On Your Side: Simple ways to tackle holiday debt
SPRINGFIELD, Mo. (KY3) - Those credit card bills from the holidays will arrive soon in your mailbox.
If you had a little too much holiday cheer, here are simple ways to get back on track.
First, assess the damage. Calculate how much you owe. Know this too when it comes to credit card limit.
“So a lot of times we advise people not to go over half of the credit line that’s available. When you start to go above that, you start to see some negative effects as far as it looking like you are maxing things out. Then you do get into an issue with the interest that you’re paying,” said Miranda Proe with BluCurrent Credit Union.
Tackle the credit cards with the highest interest first.
If it will take you more than a few months to pay off the credit cards, consider combining the debt into a personal loan. That way more of your hard earned money goes to the balance, not interest. Taking out a loan might temporarily put a ding on your credit score, but that will improve once the debt is paid.
Set some small financial goals for 2021.
Start an emergency fund if don’t have one.
Put away $20 a month for Christmas.
Do you anticipate you’ll have to buy a big ticket item this year? Like a new appliance? Start saving now.
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