As joyful as the holidays may be, it can be easy to rack up credit card charges and debt. If you’re unsure about how to pay off your holiday debt, follow our tips below to get started!
Set Your Goals
Set realistic goals for yourself and focus on paying down your credit card with the highest interest rate first. It may take time and self-discipline to pay off your debt, but if you create S.M.A.R.T. financial goals and track your progress, you’ll be on your way to being debt-free sooner than later.
Stop Using Your Credit Cards
Instead of continuing to use your credit cards, take them out of your wallet and leave them at home. Some people even go as far as to freeze their credit cards in ice to keep them from making impulse purchases!
Trim Expenses & Create a Budget
Examine your current spending habits and see if there’s anything that you could temporarily cut back on in order to redirect more money to paying off your debts. You may even find this forces you to get creative and find new alternatives that you enjoy even more!
A monthly spending plan will help you to live within your means so you can get out of debt and stop borrowing on credit cards. Creating a budget will keep you focused, allow you to be in control of your money, and give you a specific timeline to reach debt freedom.
Plan Ahead & Avoid Debt Next Year
Avoid the vicious cycle of spending next Christmas, and plan ahead with gift-giving and celebrations! Do a secret santa gift exchange to buy less gifts or plan to exchange homemade gifts with your loved ones. Instead of hosting large meals all by yourself, plan a potluck with friends or family where everyone contributes to the meal. Have some fun with it and use this time to start new traditions!
Unfortunately, most of us encounter financial difficulties at one time or another. Being prepared and aware of your financial options can help you get through these times financially and emotionally. At Encompass Credit Union, we’re here to help you get through the difficult times and back on your feet. Give us a call at (780) 842-3391 or visit us online and see how our exceptional staff can help you today.