Just over two months ago, many Utahns surely had finances on their New Year’s resolution lists, with saving more or paying off debt among those things to do.
But for those looking for a reset or a new game plan, now is the perfect time with a spring financial cleaning.
Chris Markowski is a financial planner and host of the Watchdog on Wall Street podcast, and shared that the number one thing you can do is tackle a specific kind of debt.
“First and foremost, if you want to do a spring cleaning you have got to take a look at your credit card debt because more often than not that is your highest interest debt that you are going to have by far,” Markowski explained, adding, “You've got to do what's necessary.
"You've got to get rid of some of the streaming services, you've got to get rid of some of the things, you've got to stop buying yourself $8 cups of coffee anymore and guess what you may have to work on the weekends and you might have to put the extra hours in because you are not going to get out ahead of it there's just no way at 25-30% you are not, it's just going to compound on you.”
That may be a lot to digest, especially for those with high credit card balances and multiple accounts. In order to get rid of debt faster and more organized, and potentially a lower interest rate, there is an option called debt consolidation.
Dave Nellis at America Frist Credit Union explains,
“Consolidating debt means I am going to take all of those bills credit card bills, consumer bills, medical debt and put it into one account that I can pay that debt off for a lower rate which offers me less financial stress,” said Dave Nellis with America First Credit Union. “There are some drawbacks and some of the drawbacks might be if I get all that set up and I am on a good path but then I miss a payment I then begin to put myself further back because I put all that stuff together and now I am getting behind on that payment.”
The FOX 13 Saving Smarter series strives to give ideas and options, but everyone should talk with a financial planner to determine the best route for one’s specific situation. Most credit unions and banks offer financial planning services for free if one has an account at their institution.
