Ways to tackle Holiday debt better

Do you ever faced debt after taking holiday? What are the financial issues that you have faced? Can you tell us about the different kinds of spending s that you do at the time of vacation as well as Holidays? Do you keep track of your money on a monthly along with yearly basis? The Credit health Care team has listed the best ways in which you will move you towards having a debt free life and know about more useful ways of saving money.


Now, let us talk about controlling debt. We can start by saying, it is a true fact that, credit card bills are usually the largest of the year thanks to all of the expenses that the holiday season delivers to us. The steps which we have talked about in this post are maintaining cost of living, trying to save more, going for tax returns, using less credit card, paying higher than minimum, selling away useless things, knowing about high interest debt, checking annual bonuses, controlling cases of advanced debt and also doing balance transfer. In an earlier post, we have discussed in detail about the important things to learn about identity protection. Do read that post, before coming back to this section and reading the remaining portion in this blog.

Ways to tackle Holiday debt better

What are the major difficulties to save money? When did you last save money? What are the main reasons for your post-holiday debt? You will be very surprised to know that many people in the country and also around the world simply find themselves starting the new year with an high level of debt because of the just-past holiday season. If you are looking for the right solution, you must go through the blogpost.

Maintain cost of living

Do consider simply living without that raise and it is important to note the difference in your new paychecks versus your old paychecks and use that difference to dig yourself out of debt.

Always try to spend a little less than they expected, so even if inflation hits the other things you buy a little bit in the coming year, the lower gas prices will help take the edge off.

Try to save more

You should focus on things like your laundry detergent or your soup crackers or your dishwashing soap or your canned tomatoes and buy those things in generic form, as the generic version is often functionally identical to the name brand version.

For saving more, take the train into the city once in a while instead of driving and talk to a friend about carpooling a few days a week, saving you a portion of your commuting costs.

Go for tax returns

Do note that, your tax refund will begin paying dividends immediately and those dividends will last and you will no longer have that credit card payment to deal with or it will be highly reduced.

In addition to that, for that reason take action quickly as it means that you will have more breathing room each month. Your stress level will go down since you do not have that debt to deal with.

Use less credit card

The disadvantage of credit card is that it often gets people in trouble and they see something that they want, whether it is a perfect holiday gift for someone or perhaps something they want for themselves.

For that reason, they simply buy without thinking too much about it. If they think about it at all, they just assume that their future self will pay for it and you just spend more time thinking about whether or not you want the things you are spending your money on.

Pay higher than minimum

It is key to getting rid of high interest debt. You absolutely have to be making more than the minimum payment on whichever debt you have chosen to focus on. When you have a credit card with a $2,500 balance on it that has a 19.9% interest rate on it.

Also, by simply paying $50 more a month, you pay off that debt almost three years earlier and pay a total of $894 less in interest on that debt and try addressing your debts head-on with as much extra payment as you can will save you money.

Sell useless things

Do simply go through your closets and other storage spaces, like your attic and the rafters of your garage and take out everything out and go through it, asking yourself along the way whether you really need to keep this stuff.

Moreover, price things to sell and never worry about maximizing your dollar or you are going to wind up having to re-list things and spend a bunch of time dealing with it just to earn a few extra dollars.

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High interest debt

Also, you should always make the minimum payments on all of your debts, but if you have debts spread across multiple credit cards and loans, your focus should be squarely on whichever debt has the highest interest rate.

Do make an organized list of your debts so that you always know which debt you should be focused on and the debt repayment plan organizes your debts by interest rate, with the highest interest rate debt always at the top of the list.

Check annual bonuses

You must know that people receive an annual bonus from their employer in December or January while others receive a tax return in the first few months of the year. Along with that, there are also people who receive both of the bonuses.

In addition to that, it must feel very painful to turn away from a long-anticipated spending, you will only the amazing benefits of it in the future years. try to keep an emergency fund as there can be need for money at any situation.

Advanced debt control

It is vital to start early and you can implement this yourself by simply transferring $10 or $20 or $50 per week into a holiday savings account designed to cover gifts, travel, meals, and other holiday expenses.

Do note that, this simple plan will take care of a ton of holiday stress at the end of this year and will prevent you from re-reading this article again next year during the time of Holidays.

Do balance transfer

For the need to increase your business, many credit card companies offer balance transfers where, if you sign up for their credit card, they will allow you to transfer the balance of one or more of your other credit cards to that new card.

Also, having a 0% interest rate on that transferred balance that lasts for a long while, as much as eighteen months and the easiest method is to simply visit the website of a major credit card providers in the country.

Things to Remember:

So now, you have understood the steps. You must understand that managing holiday expenses is actually a big part of maintaining that debt-free life. It is so tempting to overspend at the Holidays, but that overspending can haunt you for a very long time. Do work very hard this year using the strategies above to get rid of your holiday debt from last year. At the same time, implement a holiday savings strategy so that you do not fall into this trap again at the end of this year. Moreover, it is important to make sure that you make all the necessary arrangements in order to avoid being in debt, when you go for any vacation or spend during the Holidays. Thus, the time has arrived for the readers to implement the given guidelines. However, you must never forget to share your valuable feedback after you have applied them!

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