The beginning of a new year is an ideal time to organize your finances and achieve the goal of being debt-free and, why not, also save some money.
41% of people in the United States aim to have a savings fund, 38% aspire to pay off their debts and 30% aspire to spend less according to Fidelity’s 2024 Financial Resolutions survey.
To make your money work, it will be key to record your expenses, allocate some to savings and cut back on what you spend. Likewise, setting short and long-term goals will be an excellent starting point.
“Compare the interest we pay on credit cards compared to a personal loan,” explained Jesús Flores, tax and finance expert.
If you have problems with your card debt, you are not alone, the average user has a credit card debt of $6,088 according to Transunion, the highest total in 10 years.
On the other hand, if your credit is not excellent, that would be less than 670 points, they recommend making it a priority to increase it in 2024.
You can improve this by paying your bills on time, getting your debts paid off, and limiting the number of new accounts you open.
“Difficult situations happen and you always have to have a little money saved for those situations,” Flores said.
Experts also recommend that you adapt your financial goals to your personal situation; paying debts “aggressively” can leave you without liquidity and further complicate the situation.
If you cannot pay, for example, the full payment on your card each month, at least pay the minimum on time, that helps avoid more charges.
2024-01-03 06:05:47
#save #debt
