Start 2024 off on the right footing by making a few smart financial changes. If you have debt, prioritize paying it off. That may seem simple and straightforward but, for some, tackling debt will take getting creative. For example, a homeowner who has a large amount of bad debt should consider tapping into their home’s equity. Types of Bad debt are owing money on high-interest credit cards, or auto loans with expensive monthly payments on a car that depreciated in value the minute it was driven off the lot. A home equity loan or line of credit will allow an individual to quickly pay off bad debt and reduce monthly payments.

Good debt is debt that helps you in life like a mortgage for a home, a loan to start a business, or a student loan. Learning to use credit cards to monitor monthly spending and improve credit scores can be a smart financial move and considered good debt when done right. Select a credit card that has lower interest rates and offers rewards and use it to cover all monthly expenses. Then pay off the balance in full every month. Credit cards can be useful financial tools when used strategically. 

Find new ways to save. Open a high-yield savings account or CD for higher returns and automate transfers of money into your savings account. If you can set automated payments, why not automated savings! Also, find out what you’re paying in investment fees. Unknown fees can add up quickly and undermine your efforts to improve your financial outlook. If you’re not sure what you’re paying, or don’t understand your investment portfolio, call us at 800-689-3935. One of our Alloy Investment Management experts would be happy to meet with you.