It’s
tough to not get caught up in the spending frenzy during the holiday season. We
all have shopping lists and certain gifts we want to get, and sometimes we go
overboard without fully realizing the consequences. Reminders of the holiday
season are omnipresent—decorations, parties, festive music, catchy TV and radio
commercials, cookie exchanges, presents, and the list goes on and on.
It’s easy to be influenced to spend with all of the holiday stimuli and when
credit cards are handy. Over-spending during the holidays is nothing out of the
ordinary, which is why people are now thinking about ways to begin paying off
holiday debt. Here are tips to help you start eliminating debt from the
holidays:
-
Utilize Dollars from Monetary Gifts:
Many people receive some type of monetary gift for the holidays whether it’s a
check or cash from a family member or employer. Allocate a portion of this
toward the holiday debt you accumulated over the season. The upside to doing
this is that you will enjoy the gift more knowing that you used a portion of it
to help pay off debt while at the same time treating yourself to a little
something special.
-
Develop a Spending Plan for ‘09:
If you can develop a monthly spending plan that’s realistic for you in which
you scale back spending in 2-4 areas and even eliminate spending in 1-3 areas
each month, you’ll be surprised at how much quicker you’ll be able to pay off
your debt. The plan will be easier to stick to if you lay out a plan prior to
the new year, plus this will help you add more money to your savings once you
pay off your debt.
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Everything in Moderation:
We’ve all heard the adage, less is more. When thinking about buying a luxury
item or one that is not considered a necessity, it helps to think in terms of
moderation and living simply. The benefits you’ll reap from spending less on
items will be much greater than the benefits of possessing an unnecessary item.
Also, when you think about your future and what you’d like to accomplish by a
certain time, you tend to make smarter financial decisions. Keep reminding
yourself of how much easier it will be to attain personal goals if you’re
financially secure.
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Obtain a Lower Rate: Think of the standing bills you have each month.
Now think of what you can do to reduce those monthly payments. By taking
advantage of the current low rates to refinance your mortgage, you can save
hundreds of dollars every month and use a portion of the extra dollars to pay
bills. Consider consolidating student loans or high interest credit card bills
into one low, fixed payment.
It’s easy to get wrapped up in the hustle and bustle of the holidays and spend
more than we desire. At the same time, it’s comforting to know there are ways
to remedy over-spending during the holidays, and it’s even more comforting to
think about adding to your savings after the holiday debt is no more!
