Are you worried about your finances after the holiday season? If so, you are not alone. For many, there is pressure to “go big or go home” when it comes to gift giving. According to a poll conducted by CreditCards.com, 61% of people with existing credit card debt are willing to go into more debt during the holidays. Some even take out a loan to cover holiday expenses.
Also, Credit Karma found that most people who incur debt during the holiday season put their purchases on credit cards. Most of these gifts were given to children, significant others, and family members. Making minimum payments will not get you out of debt quickly. So, what can you do to deal with your post holiday debt?
Tips to Deal with Your Holiday Debt
- Make a Budget – it is so important to know how much money you have and where it is going. Taking the time to map out all of your expenses and categorize them by necessity will help you be strategic with your bills.
- Eliminate Unnecessary Purchases – once your budget is in place, you will see what monthly costs can be reduced or eliminated until your debt is under control or paid in full.
- Consider selling what you do not need – whether it is through an app or a garage sale, you may be able to get money for items that you do not need or use anymore. This money can go towards paying off your holiday debt.
What Can You Do Next Year?
- Make a holiday budget – this is essential for keeping you accountable to what your finances will allow.
- Plan Ahead – just like Santa, make a list and check it twice. This will give you a good idea of how many gifts you would like to give and how much your budget will allow you to spend for each person.
- Use sales and year-round deals – keeping an eye out for budget-friendly deals all year will help you cross off gifts for your loved ones in manageable chunks.
- Use Your Rewards – many credit cards offer rewards or cash back deals at specific stores, consider using these to knock down the price for something you were interested in buying. You may also be able to take the cash back and apply it to an existing balance.
- Make Something – the holiday season is about spending time with the ones you love. Use your crafting skills to make something from the heart. You will find that these gifts often mean more than something purchased from a store.
- Talk to Your Family – if you are worried about your spending, speak with your family about different options. Chances are that your family members are also concerned about how much to spend during the holiday season. You could propose ideas like setting a gift spending cap or pulling names for a Secret Santa.
Interested in Other Options to Manage Your Debt?
At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you. We also would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case. So we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.