How to tackle debt in the new year

(Photo credit: WTEN)


HAMDEN, Conn. (WTNH) — We all know tackling debt can be scary and that’s what many of you may be trying to do this New Year. So we came up with a few ways to bring that debt down and maybe add money in your pocket.

If you started the New Year with a mountain of debt, you’re not alone. Jim Horan with the CT Association of Human Services says half of the households in our state are facing debt, most around $6,000.

So, how do you start getting it down?

First, take a hard look at your budget.  If you don’t have one, it’s time to make one. Find something you can give up at least partially; maybe bring a lunch twice a week instead of buying every day.

Think about transferring debt to a credit card offering no interest for a year, but come up with a plan to pay it off! Interest could be higher on it next year if there’s still a balance.

Horan also reminds you to take advantage of tax season.

“If you’re going to get a refund, apply that money to your debt and for folks who are lower income, under about $55,000 a year, you can get your taxes prepared for free,” he said.

Here’s another idea, If you have any household items you’re not using anymore, or how about those cute clothes your kids only wore a few times. Consider consigning them, put a few extra bucks in your pocket.

The owner of the Good As New consignment shop in Hamden, Susan Fasulo-McPherson, says if you play it right, you can get pretty good money back.

“You can get anywhere from $50, we have some people who collect $150-$200 a week. Other people just gradually build it up,” she said.

Another idea: take your information off retail websites so it’s not so easy or tempting to charge something and hold off on opening new accounts until your finances are under control.

If you need more help, there are workshops happening around the state where there are people who can help you.

WTNH NEWS8 provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review. Also, you can now block any inappropriate user by simple selecting the drop down menu on the right of any comment and selection "Block User" from there.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s