The holidays are here. But once the eggnog has been drunk, the cookies all eaten and the presents unwrapped you may find yourself in some serious Christmas debt. And you are now faced with trying to figure out how to pay off all that Christmas debt. According to the National Retail Federation, Christmas spending for the 2019 season is expected to top $1,000 per shopper
Well start with the highest interest credit cards. If you only have a few hundred dollars to pay towards your Christmas debt look at the high interest cards. It makes much more sense to pay just the minimum on smaller interest cards and put whatever you can over the minimum to your highest interest cards. It might even be worth looking to see if your lower interest credit cards have a balance transfer option. Just be careful to read the fine print. Many of these cards come with a time limit on paying off the transferred balance or you could get hit with fees. And again an even higher interest rate.
Use Your Tax Return to Pay off Christmas Debt
If you are expecting a tax return you may want to be sure to earmark that money to pay off your Christmas debt. Of course, getting a tax return can get you thinking about all those new toys you can buy but if you are in debt it really is the responsible thing to do to avoid a further pitfall.
Avoid Christmas Debt
If you haven’t already maxed out the credit cards there may still be hope to avoid Christmas debt. Cut down the list of who you gift to. Your friends and family will certainly understand. Save money by comparison shopping. The internet has made this super easy. Do your comparison shopping before you head to the malls. Or use layaway instead of credit cards. Learn more about how to control holiday spending with this helpful guide.
When the Debt is Overwhelming
Maybe it’s not just Christmas debt that has you singing the holiday blues. Many Coloradans face debt due to a magnitude of issues. Perhaps you lost your job or have overwhelming medical debt. Well. there are solutions for that and I’d love to help. If you have ever considered bankruptcy please give me a call to discuss your personal situation. As always, my consultations are free. And Merry Christmas!