EL PASO, Texas (KVIA) — With the holidays out of sight, experts say there are various key elements to follow for a healthy financial roadmap for post-holiday financial recovery.
ABC-7 spoke with Keith Erickson, an El Paso-based financial advisor at Edward Jones Investments. Erickson emphasizes three key actions:
- Prioritize Credit Card Debt: According to Erickson, addressing credit card debt promptly is essential for long-term financial well-being.
- Build an Emergency Fund: Erickson recommends creating an emergency fund equal to 6 to 12 months of essential expenses for added financial resilience.
- Maximize Retirement Contributions: To secure future financial stability, Erickson advises maximizing contributions to IRA’s, 401k, and thrift savings plans, considering potential Social Security challenges.
These insights from a local expert provide practical steps for managing post-holiday finances effectively.
According to Experian Credit Bureau financial experts, overcoming debt requires a strategic approach. Here are key tips to guide you through the process:
- Track Your Spending: Starting a budget is crucial for effective debt repayment. Kassi Fetters, lead financial planner at Artica Financial Services, emphasizes the importance of tracking actual spending against your budget.
- Set Debt Priorities: Choose between the debt snowball and debt avalanche strategies to pay off debts.
- Balance Saving and Debt Repayment: Financial stability involves balancing debt repayment and saving.
- Live Like a College Student: Adopting a college student’s frugal lifestyle can expedite debt repayment.
- Consider Consolidation: Explore debt consolidation if you have good credit.
- Talk to Your Creditors: If struggling with debt, speak to creditors about hardship plans. Credit card hardship programs may offer deferred payments, reduced interest, and fees.
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Monitoring your credit through Experian’s free credit monitoring can also help track progress and gain insights into creditworthiness.
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