Holiday Debt Be Gone
Racking up holiday debt is a lot easier (and more fun) than getting rid of it. Because of the holiday cheer we usually drop our financial guard and spend too much. It’s easy to overspend when we get so wrapped up in that holiday cheer that we forget about the financial consequences of it…holiday debt. Shopping for holiday entertaining and gift giving can be a bit stressful but paying off your holiday debt can be very stressful. If not paid off quickly your entertainment and gifts will cost you more due to credit card fees and interest charges.
Damage Is Complete, Now What?
The holidays are over, the fun is too. If you haven’t received your credit card bills you soon will be and now comes the hard part, paying for it all. If you can discipline yourself to “cut-back” you can have that holiday debt paid off quickly plus save money on fees and interest. Some areas where you can “cut-back” may include: eating out less, taking your lunch to work, home brewed coffee instead of buying it on the way to work, only buy sales items or maybe get a part-time job.
Personal spending reductions are the key to eliminating your holiday debt quickly and at little cost to you.
Your Financial Lesson
After you have accumulated the holiday debt it’s too late to start budgeting, or is it? You can learn from the spending mistakes you made this year and not repeat them next year. The best way to not overspend is to change your shopping lists. Remember it’s the thought that counts, not the size or cost of the gift. If you cannot resist holiday shopping at least use the entire year to get ready for it. Try accumulating all year; put away a little bit of money from each pay check all year long. That will take the pressure off of racking up credit card bills that take 90 days to pay off.