6 Ways to Pay Off Your Holiday Debt Fast
The presents have all been opened, the decorations put away and the holiday bloat has finally disappeared. Yes, the holiday season has come to a close. If you’re anything like me, you’re relieved to have things return to normal. The holidays can be an exhausting marathon of parties, cooking, and of course, spending.
Holiday debt is normal, but it can be discouraging to start off the New Year already behind the eight ball. Luckily, holiday debt is pretty easy to manage, and can be paid off quickly if handled right! Here are my 5 tips to paying off your holiday debt fast:
1. Make a payment plan
Take a look at your budget and make sure you set aside enough money each paycheck to at least make double the minimum payment. Your goal should be to pay much more than that! Fine-tune your budget to see where you can cut back so you can make larger payments to your credit cards. The sooner you’re out of debt, the sooner you can start putting that money where it really matters!
2. Make your payments on time
Write down the due dates for each of your cards on your calendar and schedule a reminder on your phone. Late payments can hurt your credit score and force you to owe even more money in fees.
3. Pay off the card with the highest interest first
Learn to prioritize your bills. High interest rates only result in you paying more over time so make sure to knock these debts off first to save yourself money. You should also consider dropping those retail credit cards after you’ve paid them off. These tend to have the highest interest rates and limited benefits.
4. Keep to the essentials
You should have received more than enough goodies during the holidays. Refrain from treating yourself in January and put your “fun” money towards paying off your debt. If you’re an impulsive shopper, do your best to avoid stores where you will be tempted to spend.
5. Take inventory
With all the new items you’ve received during the holiday season, you might have some older things you can sell. Clothes, electronics, and even books could earn you a little extra cash to help pay off your debt. EBay, Amazon and even your local thrift store are awesome venues for selling your unwanted stuff.
6. Plan for next year
Avoid having to go into debt again and re-evaluate your budget to help save for next year’s holidays. Try spreading out your purchases throughout the year, as opposed to doing it all in December. You might even find better deals!
Remember, the most important thing of all is committing to paying off your debt. It might be easier to just pay off the minimum balance when you remember and to continue your regular spending habits. But giving debt priority, even when it’s an insignificant amount, will do wonders in helping you maintain good financial health.
Do you have any tips for paying off Holiday debt? Let us know in the comments!
Also, feel free to share our blog on your favorite social media: