Jingle bells, jingle bells, jingle all the way
Oh what fun it is to pay off your debts till next year, Mayâ€¦
Yeah, sounds a bit gloomy. I know I am no song writer. And maybe â€œnext Mayâ€ is an exaggeration. But now that Christmas presents are opened, delicacies are almost eaten up, you no longer hear bells jingle, and the Christmas magic fades away, it is right about the time to sum up your holiday expenses.
The reason for this issue I am going to write about is quite clear. People spend more and more money during Christmas shopping season every year. Since it is a sore point for me as well, I am up to give you some tips on how to beat your holiday debt hangover. Personally I have spent over $ 900 on X-mas gifts and preparations. I by no means regret it, as nothing compares to that fuzzy, warm feeling this holiday brings. And those piles of credit card bills are just side effects of the celebration.
I believe I was not the only one to blue a whole bunch of money during these holidays. Christmas consumerism is a wide-spread disease nowadays. And the statistics proves it. A recently conducted survey has shown that every American spent about $ 800 in the average during Christmas period. That is quite a severe attack of your personal or family budget. This kind of spending is a beaten path to a credit card debt. So, once you feel like you are on the edge of your financial setback, you might find the tips bellow helpful in solving your money problems.
So, you have been pushed further into debt by holiday season spending.
First what you are to do is to face the fact. Your Christmas debt hangover doesnâ€™t mean that you are an irresponsible card holder. It just shows that you care for your close people and you are still a bit of a child at heart, who believes in magic. Once you admit that you are left with a hole in your pocket, it will get much easier to start planning out your budget for the oncoming months. Estimate the approximate losses your accounts have suffered. And donâ€™t give way to despair.
Make up a six-month savings plan. That will help you a lot. Youâ€™d better not try to pay off your balance in full at a time. Potion out your payments. But try not to drag it out till next Christmas. Make maximum payments possible. But you donâ€™t have to sacrifice buying the essentials, of course. Even every $ 50 bring you closer to the day when all your financial problems fade away as a bad dream.
Try to cut down your expenses, starting with groceries, ending with entertainments. You donâ€™t have to go to extremes. Just set up a budget that will be a bit lower than your regular one. Think of getting things at a lower cost.
You can also get a balance transfer credit card and transfer your balance to this plastic. Thus you will save on interest rate. In case you keep your balance on one of your current credit cards, especially if it is not a low interest credit card, try to manage your debt problems as soon as possible. Otherwise, you will lose money on your annual percentage rate.
Think of all extra spending that you will face during next 6 months. Take into account all anniversaries, birthdays, other celebrations, trips, etc. This will help you to create an appropriate budget. And write a financial scenario for your next Christmas beforehand. Donâ€™t put it aside till December. You might consider getting one of the plastics with favorable rewards programs. A cash rebates rewards credit card, for instance. This will reduce your risks of getting into debts next year.
And, finally, stop promising yourself â€œto start overâ€ next January. Just really do it. It is not that difficult. It, actually, will take you not that much time and efforts as it may seem.
So, there are the simple rules that will hopefully help those, who have overspent a bit this holiday season. I am determined to follow them myself. So, you are not alone. Cheer up!