Dealing and paying off Christmas and New Year’s debts? Have you ever stopped to pity that over the years, most holidays are becoming more and more expensive, from the lights that we hang on the windows and outside the homes to spell attracting the Christmas spirit, not to mention the celebration with all the family in the New Year’s Eve and the numerous gifts we “have” to buy for relatives and friends.
That’s where the bills do not beat and I generally accumulate as fast as gunpowder lit we do not even see the amount swell. While it is very difficult to prevent these debts from occurring, there are a few ways to manage them and plan payments easily after bills and bills begin to arrive in the mail.
Do not blame yourself, buy it, spend it, have to pay the debts … That’s the order. Do not get frustrated or tell yourself that you’ve made a mistake or spent too much. You are not alone in this situation and almost everyone in the world gets a huge debt of money to pay after Christmas.
The first step to not be jururu, is to start to create a payment plan so that you can at least breathe even having all these debts. You can not go back in the past, but you can plan your future and pay off the debts that will win. We list some simple tips that if observed can make a difference.
Reduce the use of credit cards
Since most of your debt is probably on your credit cards, try using it only for emergencies everyday situations that really have no way. The very best is always to use the money you have in your pocket. You should know that you are losing a few dollars when using your credit cards and not paying for them.
Do not increase your credit limit
After the holidays, credit card companies generally offer their customers the opportunity to increase the credit limit for extra spending, but it is not a good idea to accept this offer. By making your limit higher, this will not make your debt decrease, but it just gives you the feeling that you have more money and also makes you think you can spend more, which is the worst of thoughts.
Pay your debts on time
To achieve this goal, you can set up automatic payments with your bank or credit card company to allow automatic direct payments from your current account at the due dates each month. In this way, forgetting your payment will no longer be an option to pay interest and exorbitant fines.
Make a report of debts and income
Making a finances report is one of the best ways to save money and keep track of where your money is being spent, makes you spend less. If you reserve predetermined values for specific needs like groceries, clothes, transports and others, you will be sure that you will not spend more than you should and therefore save every month. Do this especially after the holiday period, you may need to restrict your spending to the minimum to be able to get rid of your Christmas and New Year’s debts.
Set a time to pay off debts
Try to calculate how long it will take to repay all your creditors, ie how long your debt will be paid according to your financial budget. You can also try setting a target date on which you need to pay everything. This will help you stay motivated with your finances, despite the restrictions.
Define the value of payments
Instead of getting paid random amounts of your debt, plan ahead how much you will reserve to eliminate monthly from your outstanding balance. For example, you know you can live with 75% of your salary, automatically puts 25% to pay your debts as soon as you receive the money.
When talking about paying the debt, picking personal loan is not a very good advice, however, if your credit debts have interest rates above 10% a month, surely you will find in the market some type of loan that grants loans to 2.85% as payroll and 1.15% as the secured loan of property or vehicle. The important thing is to be aware of what you are doing and pay your debts so you do not get dirty in the market.