In our THV Working for You segment, we're revealing information that could help you get back in the black.
Linda Tucker with Consumer Credit Counseling Service sits down with THV's Liz Massey to talk about ways to reduce your debt in the new year.
Tucker says being motivated is a good start but you need to have a plan. She says you should first take a look at the money you have coming in and then you need to take a look at all your bills. You need to know how much you owe.
You also need to prioritize which bills to pay first. Of course you need to pay the bills that are necessary, like your house, health, groceries and car.
Tucker says it's also important to get a free copy of your credit report and review it.
She says you should also focus on paying off the credit card with the highest interest rate. You may also be able to transfer your balance to a card with a lower interest rate. Also try contacting your creditors to negotiate a lower rate. Some creditors are willing to drop the interest rate down if you ask. Tucker says you also need to make sure you're paying more than your minimum payment.
Another tip, save your change. At the end of the day, Tucker says throw your change into a bucket and you'll see how quickly it can add up.
One more piece of advice, if you need professional help, you may want to go to a credit counselor for help on managing your money.