NEW HAVEN, Conn. (WTNH) — It’s easy to feel overwhelmed when you’re in debt. You may want to give up and revert back to your old spending habits, which is why I talked to someone about 3 things you can start doing right now to get back on track.
Maybe you spent too much on that Spring break trip or just paid off the tax man. Money’s tight but before you give up on your savings plan, there are ways to get back on track – just don’t wait too long.
“The longer you wait, the longer it’ll take to get you out of the situation you’re in,” said Resident Director of Wealth Management at Bank of America Erik Scaranuzzo.
Scaranuzzo has three things you can do now.
- Prepare a new budget
- Start paying off high-interest debt credit cards
- Get help from an expert if you’re overwhelmed
When you prepare your budget, take a close look at the “extras” you’re spending money on. Are you shopping a little too much, can you cut down on eating out? That’s where a financial expert may help point out your flaws.
Scaranuzzo recommends you first focus on have a safety net in savings, around 3 months of expenses. Once you have that, put as much money as possible on those credit cards.
“Also you should try to refinance any credit card debt if you can because we know the interest rates on credit card debt is super high,” he said.
Start with the credit card with the highest interest rate first and give yourself ample time to succeed, it can take months or years to reach some goals.
Bank of America has a website that can help answer some of your questions.