A not-so-jolly part of the holiday season are the credit card bills from gift shopping. Amy McGraw, Vice President of Tropical Financial Credit Union, joined Inside South Florida to help you save money in the new year with tips like “snowballing.”
“It’s the idea of taking your payments, rather than trying to split up your monthly payments
across a bunch of different credit cards and not getting stuck and just always paying the
minimum, but taking one and paying the most you possibly can on that one, while paying the minimums on the other,” says McGraw. “Once that one’s paid off, whatever you were paying on that amount, add that to the minimum of the next credit card.”
When it comes to saving money and paying debts, it’s a good idea to not do it alone.
“Get an ‘accountabili-buddy,’” says McGraw. “Tell somebody what you’re doing because you’re much more likely to follow through with it than if you tried to do it on your own.”
With interest rates sky-rocketing, it’s a great idea to pay off debt with high rates.
“Interest rates are the highest it’s ever been since the Fed continues to raise rates,” says McGraw. “That affects those variable interest rates, which are credit cards. The more those interest rates go up, the more you’re paying. That’s just simply money down the drain.”
A hot tip for the holiday season: look for interest-free payment plans.
“People are actually looking for this ‘buy now, pay later,’ where you can split the payments up,” says McGraw. “If you’re going to be doing that, be careful you don’t overspend and you end up using your credit card to help pay that off.”
For more information, visit TropicalFCU.com
This Inside South Florida Segment is paid for by Tropical Financial Credit Union
