Financial Friday: Ways to chip away at that holiday debt

HUNTSVILLE, Ala. (WAFF) - From buying presents, plane tickets, and party supplies, 36% of consumers fell into debt, according to a survey by LendingTree. So now, many of are staring at your credit card bills, wondering where do I even start and how am I going to pay this off quickly.

WAFF spoke with Briana Cousins, Financial Education Coordinator at Restone Federal Credit Union.

She offered these tips to chip away at debt and how to prepare for Christmas 2022.

• Be Accountable: Take a look at your debt and get the full picture. Then take responsibility for it. Don’t be an ostrich!
• Divide & Conquer: After taking an audit of your debt, divide it into two categories:
  • Quick Payoff – those small debts with a small payoff
  • Longer Payoff – larger debts that take longer to pay off. Consider a balance transfer offer with a zero or low-interest rate. Just don’t forget to pay it off before the interest rate climbs. A personal loan may also be a consideration.
• Automate your payments: Set up an automatic payment plan for this debt so that you don’t forget it. Missed payments will lower your credit score
• Plan Ahead: Start saving for the holidays today. We all know that Christmas comes each December, put money away each month so that you are ready!

For more ways to save be sure to tune in at noon every Friday for WAFF 48′s “Financial Friday” segment.

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