Thursday, November 23

Got a Little Overboard with Your Holiday Spending Last Year?

Worried about all that credit card and store card debt you built up?

Well, if you overspent, you're not alone. Holiday advertising is designed to get you to do just that! Here's a plan to help you tackle that debt.

  • Calculate how much you owe. Write down the balance of each card. Did you withdraw money from your savings account? Borrowing from your savings account in reality is a debt you owe yourself. Write down the amount you withdrew.

  • Create and commit to a repayment plan that works within your budget. Determine how much money you can shovel towards paying off those balances. Start by paying off the card with the highest interest rate first. Pay as much as you can each month. That probably means you should skip a movie or two…or eating out, cut the entertainment!

    Your next goal will be to repay any money you borrowed from your savings account, if made use of that alternative.

    Here's a great tip to help you protect your savings account in the future: Make sure your savings account is not connected to your primary account. This makes it hard for you to impulsively draw money from it.

  • Finally, start saving and shopping for next holiday season right now. Set a goal to complete your holiday shopping before the 2016 holiday season even starts! Look carefully at after-holiday clearance sales. Are there smart gift items you can buy and store for a year? If you can afford them, buy them. Keep an eye out all year for bargain holiday gift ideas.

    Open a holiday savings account that you can't touch without great effort. By putting away just $50 each month you will have $550 dollars to spend by the time the holidays roll around.

Starting the New Year on a rocky path isn't impossible. It's how you navigate that rocky path that definitely is a big deal. What you do right now will impact your life for years. Use these tips as a road map, and get yourself on the right path!

Happy New Year...

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