How to deal with credit card holiday aftermath

Do not let the sight of your credit card bill deter you from creating a budget to tackle your debt.

13:53 28 June 2014

If you are reeling from the credit card bills resulting from your holiday spending, you are not alone. It is common to find out that the effects of spending were underestimated. Do not let the holiday debt aftermath put a damper on your new year. 

 

There are a few things you can try to make sure that you get back on track with your finances. 

 

• Budget—it is most important to set up a list of your monthly, quarterly, and annual expenses. Then compare those with the amount of income you bring home after taxes. Ideally, you have money left over after you have paid all your expenses. If not, you may need to get a little creative, but the first part is figuring out the nature of your financial situation. 

 

• Consolidate—if you have lower interest credit cards you may want to try and consolidate your credit card debt to cards that have lower interest rates. It may lower your monthly payments and make sure you are not wasting as much money on interest. 

 

• Discipline—if you are in a tight spot you might want to consider leaving credit cards, and even debit cards at home when you go out. You can stay on a spending budget a little easier if you take out your spending allowance in cash and refuse to spend more once it is gone. Cash is just easier to keep track of when it comes to a personal spending allowance. 

 

• Preparation—if you put away some money into one or two accounts all year ‘round, you may be able to avoid the temptation of using credit cards for next year’s holiday shopping. Make sure that you have some savings set aside for emergencies, repairs, and other expenses after your holiday expenses. 

 

• Reduce—whenever possible reduce your expenses, and contemplate selling extra belongings.