Financial experts advise tackling holiday debt early as new year begins

While the holiday shopping season may be over, the bills are not.

Financial experts say lingering credit card balances can weigh heavily on budgets well into the new year.

A recent LendingTree survey found that 37% of Americans accumulated holiday debt, with respondents averaging about $1,223 in additional spending.

“Paying down debt is the first thing people should focus on,” said Mark Hamrick, a senior economic analyst at personal finance website Bankrate.

After addressing debt, Hamrick recommends taking a closer look at monthly spending.

Once spending is under control, experts say building savings is the next key step.

Hamrick recommends putting money into a high-yield savings account, which can offer annual returns of around 4%.

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