Only 33 percent of Americans feel better about their finances now compared to a year ago according to the Federal Reserve. Changing your financial situation takes some work and the new year is a perfect time to strategize.
The Federal Reserve also says we have more than $1 trillion in revolving debt, most of that credit card balances. Before you can really start saving. you’ll need to get out from under your debt.
“If they can start paying off that lowest balance first, we like to do it that way,” said Mindy McIntosh, financial professional at McIntosh and Associates in Freeland.
She said paying off the lowest balance first gives people momentum to keep going. However, where do you get the money to pay off that debt?
“If it's not on paper, all of us are spending a little bit more than we know,” McIntosh said.
Start tracking every dollar you spend, she suggests. Then, you can figure out where to cut back and use that money to pay off debts.
“We can carve back a little here, we can shave here and where we find those spots they can shave, we can truly help on the debt side,” McIntosh said.
Another option: debt consolidation. McIntosh said some of her clients do better with one lump sum of debt to pay down. You consolidate all of your debt items into one, giving them on target goal.
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