Try these strategies if you still need help with overspending during the holiday season.
Despite the holidays being over, many Americans still owe money for gifts, travel, and entertainment. Over a third of consumers raised $1,249 in holiday debt last year.
Besides credit cards, some Americans opted to take out personal loans or buy now, pay later financing. If you’re experiencing a holiday spending hangover this month, here’s what you can do:
Be kind to yourself
Debt can sometimes feel overwhelming and make you anxious. You can’t change the past, so let go of any negative feelings you have about your spending in the past and think about what you’re doing now – and in the future – to fix it.
It’s essential to take note if being in debt makes you uncomfortable. That can help you make better financial choices.
It would help if you recognized the anxiety overspending causes now, so you can do things to prevent it from happening again and feel confident in the decisions you’ll make.
Make a list of your current circumstances
You can plan how to handle your debt after you figure out how much you owe and how much you have to pay for each account. You’ll save the most money over time when you put extra cash toward your highest-interest debt, but paying off the debt with the smallest balance is also satisfying.
Pay off debt faster by working a side job
Create a new budget that considers those payments once you decide which approach to take. You might need to cut back on other expenses. Also, switch to cash and debit cards, so you don’t add to your existing balances while you’re paying them off.
Your chances of succeeding are significantly higher if you write it down and execute it methodically. Without a plan, it’s likely to snowball.
Pay down debt faster with a side gig
Trying to earn some additional income might be the only way you can make a dent in your payments if you’ve cut your expenses as much as you can. You could get extra cash by driving for a ride-sharing service, pet sitting, or selling stuff online.
Now is the time to make plans for next year
It would help if you considered putting some extra cash (once you have paid off your debt) into a holiday fund for next year after figuring out how to cut your budget and earn more income. By doing so, you will have extra cash available by Black Friday, so you will not be in debt by the time it arrives.