Most Canadians overdo it when it comes to holiday spending. While there’s nothing wrong with having fun and indulging over the holidays, you don’t want to spend the next year paying for it. Paying off your holiday debt in the new year is possible. If you are completely overwhelmed by the debt you may need to meet with a consumer credit counselling firm or debt counselling service to put you on the right track, but it’ll be worth it in the end. New year, new start.
Pay Off The Highest Interest Cards First
When you visit a credit counselling firm, they will often tell you to pay off the highest interest credit cards first. Many of us use our credit cards more than we normally would over the holidays and chipping away at the card with the highest interest rate will be the most beneficial. Remember that you still need to make your monthly payments on the other cards whenever possible. If you have having difficulty managing, such as borrowing from one card to pay another or only being able to make the minimums on all your cards, it may be time to get help.
Make A Big Dent Now
January and February are the best times to make a big dent in your holiday debt. Try and pay off as much as you can in the first two months of the year so that you can save money in March. That way when April rolls around and you are getting money back from the government from taxes, you can save that money too. Conversely, if you will owe money to the government at tax time, you’ll be able to pay if off right away since your holiday debt will be already taken care of, and you’ve used March as your saving month.
Cut Back On Expenses
A great way to pay off your holiday debt in the new year is cut back on your expenses. Bring lunch to work, avoid $7 lattes, take the bus instead of gassing up your car, stay home instead of going out – these are little things that you can do to have more money at your disposal to pay down your holiday debt.
Set Realistic Goals
If your debt is minimal, you may be able to pay it off in January. If your debt is large, it may take you until the end of February or longer to take care of it. Set realistic goals for yourself and know when to get help. A debt counselling professional can help you come up with a budget that makes sense for your income.
Please contact us for more information regarding our debt counselling, bankruptcy, proposal, consolidation, and consumer credit counselling services. The holidays can be an expensive time but that doesn’t mean you have to spend the rest of your life paying for it. We’ll help determine the best way to tackle your debt before it balloons.