Holiday debt - Get out of it with the help of 6 effective strategies

GoodNelly By GoodNelly, 13th Jan 2012 | Follow this author | RSS Feed | Short URL http://nut.bz/3gdj9fvc/
Posted in Wikinut>Money>Debt

Holiday debts are a menace. They ruin your happiness at the very beginning of the new year. This article talks about 6 smart strategies that can help you ditch holiday debt.

Holiday debt – Get out of it with the help of 6 effective strategies

Before the Christmas and the New Year, the web world was flooded with articles, videos, pod casts, etc. on the ways to avoid getting into holiday debt. You got series of suggestions from your family members and friends about how you can stick to your budget and steer clear of debt troubles. If you have acted as per their advice, then you must have started the New Year on a happy note. However, if you have listened to your heart and bought all the items that your budget didn’t permit, then you’ll have to pay a huge credit card bill at the end of the month.

Don’t be sad just because you have got into holiday debt. Use your mind to develop some strategies to get out of the holiday debt hangover and build your financial fortress. If you can’t devise some strategies on your own, then have a look at the article to ditch holiday debt gradually.

Strategies that can help you tackle holiday debt

Holiday debt can be painful, especially in the very first month of the New Year. It has the potentiality to create an additional stress at the very beginning of the year. However, with clever strategies, you can handle holiday debt on your own. Check out the below mentioned strategies that can be used to beat the holiday debt hangover.

1. Spend more on your debts: Calculate the minimum payment you’re required to make every month. Compute how much you’ll have to pay if the amount is doubled. Check your savings account and find out if you can afford to pay this amount. If yes, then make double or triple payments to get out of debt soon.

2. Call your creditor and start bargaining: Don’t feel ashamed to call your creditor if you can’t pay off the total amount. Speak to your creditor about lowering the interest rates on the credit cards. If the creditors are not willing to talk to you, then you may transfer the outstanding balance to a new lower-cost card.

3. Avoid indulging into fun activities: Fun days are over. Now, it is time to work on your debts. Stop taking your family to hotel, spa, salon, café, etc. till your debts come under control. Reduce expenses on luxuries and save money for paying off debts. Don't be too strict upon yourself or your family. Splurge occasionally to stay motivated.

4. Use cash instead of cards: Explain your current debt situation to your family. Tell them that you’re trying your best to get out of debt in this year. This implies that family members have to stop making purchases with the credit cards. Use them only when you have no other choice. Carry cash in your wallet and use it for various expenses.

5. Consolidate your debts: You can approach a debt consolidation company to cut back the total payments you need to make on the interest rates. The counselors will help you get out of the accumulated holiday debt gradually. Make sure you enroll in the debt consolidation program only when you can’t afford to pay the full amount within the next year.

6. Set up achievable goals: Don’t set a target which is not possible to achieve. If you need to skip dinners for repaying your debts within 4-5 months, then it is better to not set such a target for yourself. Set a goal which you can achieve in reality. If you have incurred debt in multiple credit cards, then it is better to pay off one card at a time.

If you have received your holiday bonus from the payroll department, then use it to pay back your creditors. You can be seriously tempted to deposit the money in your checking account. However, think about the peaceful nights you can have after paying off the debt. Debt is an evil. The sooner you get rid of it, the better. Don’t carry this load throughout the year. Spend the extra dollars to repay your debts. This way you can spend the 365/3666 days without any financial tension.

Tags

Debt, Debt Consolidation, Holiday Debt

Meet the author

author avatar GoodNelly
Hi! I am a senior member of the DebtConsolidationCare Community. I have been writing articles for this community for the past few years. I love participating in the online forums and helping troubled individuals to solve their debt problems. I am als...(more)

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Comments

author avatar Buzz
14th Jan 2012 (#)

Great advice, Goodnelly. Very pleased to meet you here.

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author avatar ittech
28th Jan 2012 (#)

quite good

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author avatar ittech
28th Jan 2012 (#)

well written

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