WASHINGTON, (WDVM) — It’s no secret that many people are struggling financially, and unfortunately, with holiday spending and other setbacks due to the pandemic, a lot of residents are bringing debt into the new year.

Financial experts say the first step to getting out of debt is creating a budget. Prioritize the expenses you are obligated to, and get rid of frivolous spending, but financial advisors say if you want to get ahead of your debt, you should get rid of subscriptions and other unnecessary charges.

Once you cut some of your costs, calculate how much of your income you can put towards savings and debt.

Natalia Brown , Chief Client Operations Officer, National Debt Relief stated: “Federal Reserve actually did a study that found that 40% of Americans are not able to pay an emergency $400 Bill, so saving is going to be really important and then the second is there is no shame in getting help companies like ours national debt relief are actually here and established to help clients.”

If possible, financial experts recommend applying twenty percent of your income to your savings.