Post-Holiday Debt: How to Handle it so it doesn’t Haunt you all Year Long
You swore you wouldn’t do it.
You swore you’d keep your spending in check this holiday season and lay off the credit cards. But here you are again: stuck with loads of credit card debt and equal parts post-holiday guilt.
Don’t give up hope just yet, though. The fact of the matter is that there are a few, simple ways to control your debt and spending and eliminate credit card debt so that it doesn’t rule your life.
The following tips will help get you started on a new, financially responsible 2010:
- Consolidate your debt – Often times, debt can seem all the more overwhelming and difficult to manage when you are struggling with numerous credit cards. Instead, consolidate your debt onto one credit card with a competitive interest rate and a fair balance transfer offer.
- Pay more than your minimum payment – Simply put, your credit card balances can go nowhere if you continue to pay just the minimum payment. Find at least a few extra dollars each month in your budget and put it towards your credit card bill – your balance will thank you for it.
- Order a copy of your credit report – You can’t begin to move forward until you clear up your financial past. Order a copy of your credit report from all three major credit reporting agencies (you are entitled to one free copy each year) and take the time to thoroughly check them out so you can move forward with your financial plan.
- Cancel any retail credit cards – Retail credit cards are often an invitation for financial trouble. Too much temptation combined with high interest rates often spells trouble for credit card consumers.
- Consider a home equity loan – If you have equity in your home, consider using it to your advantage and use it to pay off your credit card debt. However, if you don’t change your spending habits, you will likely end up in the same situation in the upcoming year.
- Make a budget and stick to it – Which leads me to the last tip: make a budget and stick to it. The bottom line is that if you don’t make a point to change your spending habits and your view on finances, you will likely find yourself in the same financial mess as you are in right now. If your finances and credit card debt are more than you can handle, consider speaking with a non-profit consumer credit counseling service.
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