5 ways to start the new year with less debt, according to experts

Core Insights - The article emphasizes the importance of resetting financial habits in January to effectively manage and pay down debt, suggesting that even small changes can lead to significant progress by the end of the year [1][2] Group 1: Debt Management Strategies - Reviewing credit reports is crucial for identifying errors that can save money and improve credit scores, which can lead to lower interest rates [4][5] - Tracking spending helps individuals recognize spending patterns and encourages better financial habits, making it easier to allocate funds toward debt repayment [6][7][8] - Automating debt payments ensures consistent progress in paying down debt and reduces the risk of late payments, which can protect credit scores [9][10] Group 2: Psychological and Behavioral Approaches - Overcoming negative self-talk about financial management is essential for maintaining motivation in debt repayment; focusing on small wins can build confidence [10][11] - Implementing a 90-day spending freeze can help individuals redirect funds from non-essential spending to high-interest debt, promoting a reset in financial habits [12][13][14]