If you are feeling the weight of extra holiday debt then you aren’t alone. There are many Americans who overspend on the holidays just to take care of travel and gift giving. Now that the holidays are over, it is time to focus on paying off those debts as quickly as possible. Here are three things you can do to recover from debt incurred over the holidays:
- Pay off the small cards first- If you opened a bunch of new store cards, or charged existing cards to pay for gifts and expenses over the holidays then you should work to pay off the smallest ones first. They will have the lowest minimum monthly payment, and by adding some to each payment, or even doubling your payments you can get the balance to zero quickly. Once you have those smaller cards paid off, you should take all of the money that you were paying toward the smaller cards and apply it to the remaining balances.
- Sell your old stuff- Since you probably just got a bunch of new stuff over the holidays, now you can take some of your old items and sell them. You can hold a garage sale, list the items on Craigslist, or even ask your friends and family members if they are interested. Even though you won’t be able to get all the money back that you spent on those items originally, you may be able to make enough money to pay off some of your holiday debt. In the end it might be best to combine this option with one of the others in order to completely payoff your debt.
- Ask for a raise- If you worked hard all last year and can prove how valuable you are to a company then the new year is a great time to ask for a raise. Go to your employer and show them what you have accomplished and how much money you have earned the company. If you do your homework and prepare, there is no reason why you can’t get a nice raise. With a little extra cash in your pocket you can start to pay off your debt more quickly. Remember that no matter what you do, it is going to take time so you need to be patient.
The key to paying off your holiday debt is consistency. Even if you feel like you aren’t making any progress, you need to stick to your plan. In the long run you will be able to make a huge dent in the amount of money that you owe. Before too many months go by, it is a good idea to speak with an experienced bookkeeper or accountant to see where you can make improvements. To learn more about what you can do to get your finances in order again, contact Bookkeeping Valleywide today! (480) 467-3475