Incomes Growing Faster than Debt in US
If you are like many people, you probably have a habit of overspending during the holidays. This is normal even when you have set a budget for your spending, especially when you spot that perfect gift for a certain person. On top of buying presents, there are many other things happening, like parties with those close to you who you may not have seen for some time or work-related events.
So many events can easily hit you in the wallet; but fortunately, there are some ways you can bounce back from this financial setback. Below are several tips for how to recover from holiday overspending.
Survey the Damage
First, you must be completely honest with yourself about your spending and determine how much you owe in debt. Knowing the extent of the damage is crucial and is the only way you can effectively move forward. Look at the situation so that you can get a better understanding of how exactly you arrived in it. This insight will help you avoid repeating anything that could lead to overspending during the next holiday season.
Create a Holiday Debt Payoff Plan
Create a holiday debt payoff plan that can help you eliminate your debt. Determine how much money you can put toward paying it back at the earliest possible time. Consider whether it may take only a few weeks or several months to eliminate your holiday debt.
Avoid Post-Holiday Sales
Many stores have post-holiday sales that can certainly be tempting. However, chances are you don’t really need any items that are on sale. Avoid even going near stores during this time and resist the urge to buy more because of the sales. After all, you want to focus on paying back your debt, not acquiring more.
Use Gifts Wisely
If you have received holiday gifts that you don’t want, now is the time to put them to good use. Return them and see if the stores will give you cash back for them. If they do, you can put this money toward paying off your holiday debt.
Make It a Game
Treat paying back your debt as though it were a game. This makes it feel as if you’re winning, which can be encouraging. Get your family or friends involved as well and make it a competition.
Make Note of Your Progress
Making note of your progress can be motivating when you’re working toward paying down your holiday debt. Even if you pay the bare minimum on your credit card, consider it a small victory.
Sell Items You Don’t Need
The post-holiday time is a great one to sell items you don’t need. Have a garage sale or sell your unused and unwanted goods on eBay or another online retailer. It’s a great way to get extra income that you can put toward paying back your debt.
Use Your Tax Return
Once you get your tax return, you can use all or some of it to pay down your holiday debt. If you file your taxes electronically, you can do this early because you’ll receive your refund earlier.
Freeze Your Credit
Put a freeze on your credit card. It can help you avoid acquiring more debt while you work on repaying what you owe from your holiday shopping.
Plan for Next Year
Set some money aside for next year’s holiday shopping so you don’t have to rely on credit cards for your future holiday spending. It can help to minimize the damage for next year.
If your credit issues were already perilous before the holiday season, it may be too late to start making account payments. If your credit card debt is in collections or you’re facing legal action from a lender, speak with Heather Benveniste with Benvensite Law Office. She has numerous years of experience helping Illinois residents alleviate credit card issues. Let her go to work for you! Contact us today for a free case evaluation!
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