How to Handle a Holiday Debt Hangover
Have the holidays left you with a holiday debt hangover? Here are some tips to help you tame the Ghosts of Holiday Expenses Past.
Did the holidays leave you with a "hangover" of holiday debt? Before you say "Bah, humbug!", take a look at these tips to and start off the new year on better financial footing.
Face the music.
You may be tempted to ignore your holiday bills, but think again. Ignoring your bills won't make them go away, and just one late or missed payment can hurt your credit score.
Avoid taking on any more debt.
The first step to getting out of debt is not to get into any more debt. That's especially true after the holidays.
Talk to your creditors.
You may be able to work with your creditors to lower your interest rate or monthly payment, consolidate your debts, or change the terms of your debt. Talk to your creditors right away, because you have more debt management options if you talk to your creditors as soon as you think your holiday debt and other debts are becoming hard to manage.
Make a plan for handling your holiday debt and stick to it.
Look for ways to cut costs and increase income, pay down your debt, and stay out of debt in the future.
Consolidate your holiday debt with a bill consolidation loan.
Depending on your financial situation, a bill consolidation loan may be able to help you lower your total debt payments and free up extra money to save for emergencies or pay off other debts. In addition, a bill consolidation loan may also help you organize and streamline your finances with just one payment.
For more information about consolidating your holiday bills and other debts, visit our Debt Consolidation page.
Make small wins count.
If you're unsure which credit account to pay off first, focus on the one with the smallest balance. Paying off the "low-hanging fruit" makes you feel like you're making progress.
Get a jump on next year.
It's not too early to plan for next year. Think about what you did that worked well, what you want to change, and how you plan to make those changes happen.
Look into saving for holiday expenses to reduce holiday debt.
A holiday savings account may be an option for you to save money for holiday expenses and have less holiday debt during the next holiday season.
Protect yourself.
Make sure to get any details about help with your debt in writing, read everything carefully before you sign it, and avoid agreeing to anything that seems too good to be true or too easy to do.
These are general recommendations not applicable to all financial situations. Every financial situation is unique. Further, the suggestions and recommendations contained within the content provided are not an assurance of any future result. Be sure to discuss your specific financial circumstances with a legal or financial expert. Contact us for more information.
