Planning For New Year’s Financial Resolutions
After a holiday season of shopping and spending, many of the top New Year’s resolutions are geared towards improving finances. Nick Montie, CEO of Wolverine State Credit Union elaborates, “We see toward the end of the year people are coming off with a lot of holiday debt. They might of ran up their store credit cards trying to pay for presents and gifts. One of the things they can do is consolidate that debt and try to roll it over into a lower paying interest debt consolidation loan or depending on how much they rack up, even a home equity loan.”
While many are focusing on paying off debts and improving their credit scores, some are waiting for lower interest rates to buy homes. “There is an expected rate decline for next year,” said Montie, “however they don’t predict it’s going to be a lot, probably one to one and a half percent by the end of next year.” So, while rates won’t experience a dramatic increase, it will be a hopeful change for many.
While loans are often necessary for larger purchases, such as homes, they may be difficult to keep track of for smaller purchases. “If you can, try to avoid financing everyday items,” said Montie. If you find yourself using credit cards for those smaller ticket items, maybe see if you can postpone it. Just because those little purchases add up to a lot and you don’t want to end up paying interest on top of that.”
Whether you’re planning on making big or small purchases in 2024, awareness is key. “Create a log. For two weeks to a month, log every expense you make, no matter how small,” said Montie. “If you’re stopping everyday at Starbucks for a coffee or you’re going out to eat for lunch every day. Just log that down and add it up at the end of the month to see how much you’re truly spending.” From there, you can make a budget to tackle your 2024 New Year’s resolutions.
