10 Ways to Recover From Christmas Debt

10 Ways to Recover From Christmas Debt

Every year, millions of Americans go overboard at Christmas. After the holidays are over, they quickly realize just how much overspending they did. For some people, this is a time to panic and wonder how they’ll ever recover. The following tips are meant to help you recover without becoming overwhelmed by your Christmas debt.

#1: Accept the Debt

Many people get all the bills after the holidays and simply can’t deal with it and decide to put their Christmas debt off for a more convenient time. But, do you seriously think there is going to be a time when your Christmas debt is going to seem smaller? Just take a few minutes to look over how much you spent and accept it.

#2: Focus on It

The next step to recover from Christmas debt is to focus on the debt. Instead of buying even more items at the after-the-holiday sales, step back and think about how much you’ve already spent. Do you really need to add even more debt onto your credit cards?

#3: Add It All Up

Once you’ve accepted and focused on your Christmas debt, it’s time to add it all up. You must realize that the numbers may be more than you expected. It may even take longer to recover than you might have expected. But, this is a vital step in recovering from Christmas debt.

#4: Ask How Much You Can Afford

Many people panic and make the mistake of trying pay off all their Christmas debt at once. If you want to recover from this situation, you’ll ask yourself how much you can afford. Add up all your expenses and then see how much you have left from your paycheck to devote to your Christmas debt.

#5: Break It Down

Once you’ve added up all the bills, think about how many months you want to spend paying the bills off. Then break down your Christmas debt by month, then by week. That way, you’ll have a better understanding of what it will take to recover.

#6: Put Off Unneeded Expenses

The most important thing you can do is to put off unneeded expenses until you are able to recover from your Christmas debt. For example, instead of renting movies every week or eating out 4 days a week, watch movies you already own and eat out only 2 times a week.

#7: Look for Savings

If you’re not into looking at sales papers and clipping coupons, you should at least do these two things after the holidays. Every bit of money you save can help you tackle and recover from your Christmas debt.

#8: Contact Credit Card Companies

Another important step is to contact your credit card companies and ask if they can lower your interest rate. Depending on how long it takes to pay off those bills, this could save you a lot of money.

#9: Pay Off the Highest Interest Cards First

It only makes sense to tackle high interest credit cards first. Instead of paying off a card you only spent $200 on it, with an interest rate of 12%, focus on the card that has an interest rate of 21%. The faster you pay off that card, the less interest you’ll have to pay.

#10: Don’t Get Overwhelmed

Last, but not least, don’t get overwhelmed. Becoming overwhelmed by your Christmas debt can make it even easier to put off paying it. Instead, take one step at a time and you’ll quickly recover without feeling the strain.