Post-holiday 'hangover'? How to get financially in shape for 2024

AUSTIN (KXAN) -- Many Americans are still struggling with a holiday "hangover."

“We are speaking of finances, not eggnog,” said Rod Griffin, the Senior Director of Public Education and Advocacy for Experian.

Financial experts say Americans had $1.08 trillion in credit-card debt before the holidays and one-third said they went into debt over the holiday season with an average of $1,028, according to a Lending Tree poll.

Experian, one of the big three credit reporting agencies did some research of its own.

“We recently did a survey and for the first time in five years, more than half of the respondents told us that they are including a financial New Year's resolution,” said Griffin.

If you are trying to recover from a post-holiday financial hangover, Griffin said first step is to set a budget.

“Most of us hate that word. So, call it a spending plan, whatever you'd like. But we need to write down and track where our money is coming in and where it's going out so we know what's happening,” said Griffin.

If you have a credit card with a high interest rate, the traditional advice from financial experts may not apply to everyone.

“Historically, what the math says is you should tackle the credit card with the highest balance, highest interest rate first, that's going to save you the most money over time. The challenge with that is, you may see very slow progress before you see that balance coming down that can be emotionally defeating and cause you to give up.”

Instead, Griffin suggests starting with a small balance to get motivated, “pay off that card, and then roll that amount into the next card. And just take little steps at a time.”

Moving forward, you may want to look for cards that fit your needs and give you something back when using credit.

“If you're getting discounts on your purchases, getting airline miles, getting points, you're actually saving money, it's giving you a financial advantage, and that's what credit should be.”