Mastering Debt Repayment: Tips for a Financial Comeback

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:

1. Prioritize Credit Card Debt: According to Erickson, addressing credit card debt promptly is essential for long-term financial well-being.
2. Build an Emergency Fund: Erickson recommends creating an emergency fund equal to 6 to 12 months of essential expenses for added financial resilience.
3. 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:

1. 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.
2. Set Debt Priorities: Choose between the debt snowball and debt avalanche strategies to pay off debts.
3. Balance Saving and Debt Repayment: Financial stability involves balancing debt repayment and saving.
4. Live Like a College Student: Adopting a college student's frugal lifestyle can expedite debt repayment.
5. Consider Consolidation: Explore debt consolidation if you have good credit.
6. 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.

Monitoring your credit through Experian's free credit monitoring can also help track progress and gain insights into creditworthiness.