ISLAND NATIO >> WELL, IF YOU'RE LIKE A LOT OF PEOPLE, YOU MAY HAVE PLUNKED DOWN THE PLASTIC WHEN PAYING FOR GIFTS OVER THE HOLIDAYS ARE MAYBE RACKED UP SOME SERIOUS CREDIT CARD DEBT DURING DIFFICULT TIMES OVER THE COURSE OF THIS PANDEMIC. WHATEVER THE REASON YOU MIGHT BE MAKING A NEW YEAR'S RESOLUTION TO PAY IT ALL OFF. I ASKED A FINANCIAL EXPERT FOR THE BEST WAY TO GO ABOUT IT. SO YOU DON'T WASTE YOUR MONEY. >> FROM ONLINE PURCHASES TO IN-STORE CHARGES. IS YOUR CREDIT WEIGHING YOU DOWN? YOU'RE TRYING TO KEEP YOUR CREDIT SCORE UP.

>> YEAH, I TRIED READ IT'S AND MY KIND OF LIKE DOWN AND HE'S NOT ALONE. HOW OFT ENARE YOU HEARING FROM CLIENTS ARE WORRIED ABOUT THEIR CREDIT CARD DEBT? >> THERE'S ALWAYS PEOPLE COLLEAGUES AND SPENT TOO MUCH OVER HOLIDAY SEASO N. >> FOR BLOOM IS THE DIRECTOR OF CLIENT ENGAGEMENT AT BLOOM ADVISORS IN FARMINGTON HILLS. SHE OUTLINES FOR MADE STEPS TO PAY OFF YOUR CREDIT CARD AT STEP ONE.

GRAB A PEN AND PAPER AND ORGANIZE. I WANT TO BRING TO WRITE OUT. >> ALL OF THEIR DEBTS. INTEREST RATES RIGHT NOW. DETAILED BUDGET OF WE RRCUENTLY SPEND IN A MONTH. I WANT PEOPLE TO TAKE SOME TIME TO UNDERSTAND WHAT THEIR CURRENT CREDIT FOR THIS STEP TO PLAN A STRATEGY EITHER. THE AVALANCHE METHOD OR THE SNOWBALL METHOD. >> THE AVALANCHE INVOLVES MAKING AND MINIMUM PAYMENT ALL OF YOUR DEBTS AND THEN USING ANY MONEY THAT YOU HAVE EXTRA TO PAY OFF YOUR DEBT WITH THE HIGHEST INTEREST RATES AND THEN THE SNOWBALL METHOD INVOLV ESMAKING THE MINIMUM PAYMENT AT ALL YOUR DEBT AND THEN PAYING OFF YOUR SMALLEST DEBT FIR STBEFORE MOVING ON TO A BIGGER ONE. REGARDLESS OF THE INTEREST RATE BLOOM SAYS WITH THE AVALANCHE METHOD, YOU'LL PAY LESS IN INTEREST OV ERTIME, BUT IT REQUIRES DISCIPLINE AND MAYBE EVEN SOME EXTRA DOUGH FROM A SIDE HUSTLE TO ME AKIT WORK WITH THE SNOWBALL THAT THAT YOU'LL LIKELY PAY OFF THE CARD FASTER. A BIG MOTIVATOR FOR SOME, BUT YOU'LL SPEND MORE MONEY DOING IT. OTHER OPTIONS PEOPLE SHOULD CONSIDER REFINANCING THEIR DEBT.

WHETHER THAT'S TAKING OUT A LOW INTEREST PERSONAL OUT. IF YOU QUALIFY TAPPING INTO YOUR HOME EQUITY AND REFINANCING FOR SOME PEOPLE, YOU CAN GET 5% OF MASSIVE SAVINGS FROM 18% BALANCE. TRANSF EROPTIONS CAN'T HELP BUT WATCH OUT FOR TEASER RATES EXPIRE QUICKLY. STEP 3. ASK FOR A LOWER INTEREST RATE. CALL YOUR CARD ISSUER AND LET THEM KNOW THAT YOU'RE THINKING ABOUT TRANSFERRING YOUR BALANCE OUT THAT THAT YOU WOULD RATHER WORK WITH AND NEGOTIATE YOUR RATES AND EP ST4 ACT LIKE ALL NEW YEAR'S RESOLUTIONS. BLOOM SAYS IF YOU ONLY DO IT FOR A MONTH, IT WILL JUST COST YOU IN THE LONRUN.G OF COURSE, IT'S IMPORTANT TO REMEMBER A KEY PIECE OF THE PUZZLE HERE.

YOU ARE ENTITLED TO ONE FREE COPY OFOU YR CREDIT REPORT. EVERY 12 MONTHS FROM EACH OF THE 3 NATIONWIDE CREDIT REPORTING COMPANIES AND YOU CAN ORDER THEM ONLE INFROM ANNUAL CREDIT REPORT DOT COM. THE ONLY AUTHORIZED WEBSITE. >> FOR FREE CREDIT REPORTS OR YOU CAN CALL THE TOLL-FREE NUMBER 8, 7, 7, 3, TO 2, 8, 2, 2, 8. NOW, IF YOU CALL THE NUMBER, YOU WILL NEED TO PROVIDE YOUR NAME, YOUR ADDRESS, SOCIAL SECURITY NUMBER AND YOUR DATE OF BIRTH TO VERIFY YOUR IDENTITY.

AND YES, WE USUALLY TELL YOU NEVER TO GIVE OUT YOUR PERSONAL INFORMATION OVER THE PHONE. BUT IN THIS CAS E,YOUR THE ONE MAKING THE CALL TO THE NUMBER APPROVEDY BTHE FEDERAL TRADE COMMISSION OR RIGHT. AND THAT'S THE KEY DIFFERENCE THERE. YES, YOU'RE REACHING T. DON'T EVER GIVE OUT THAT OU INFORMATION TO SOMEONE CALLING YOU. >> YOU RCH EAOUT AND CALL THEM PORT DISTINCTION.

THEY'RE VERY, VERY GREAT. GREAT ADVICE. YOU KNOW, TRYING TO GET OUR FINANCIAL SITUATION .