|March 22, 2017||0|
For many people, Christmas is viewed as the most joyful time of year for both young and old. All of us are thrilled to finish the year of work or school and devote some quality time with family and friends. They don’t call it the silly season for nothing either. Eating and spending too much is the norm and it’s rather easy to lose track of your savings and your waistline! Enjoying a hard-earned holiday is fundamental for our emotional health, so it’s easy to overindulge in presents and vacations during the festive season. But alas, the new year arrives soon enough and we can all start a fresh slate. Time to make some resolutions and prepare for the year ahead.
Before we know it, we’re back in the same schedule. Work, school, bills, stress. But what if you’re in the predicament where you spent a bit too much in the course of the festive season and now you’re in debt? Well, don’t be distressed, it happens to lots of people during this time of year. The good thing is we’ve got some suggestions on how you can efficiently pay off your Christmas debts in a timely fashion.
Make a list of your debts
The very first step in clearing your Christmas debts is to work out how much you owe. Grab a pen and paper and list each of the debts you have, in conjunction with the creditor’s, interest rates, next repayment date and repayment amounts. Try to be conservative here and list every debt you have, regardless of how big or small. Once you’ve discovered your repayment amounts, you’ll have to devise a plan on paying off the principal, which brings us to our next recommendation.
Don’t forget that debts includes both interest repayments and principals. Paying the interest only will doing nothing long-term, so when you’ve discovered your repayment amounts, the next step is to make a plan on paying off the principal. It’s generally best to concentrate on the highest interest rate debts to start with which will save you money in the future. Interest on loans are a formidable force and can stifle your finances if you don’t take care. You additionally might want to list your income streams simultaneously so you can work out how much will be left over for living expenses. This will assist you in our next tip, creating a budget.
To ensure you can continue to enjoy the year in advance, you’ll want to repay your Christmas debt inside the first quarter of the year, so creating a budget and following it is essential. If you’ve had trouble adhering to a budget before, there are plenty of great smartphone apps that can help you with managing your budget. Just because you’re on a budget doesn’t suggest you can’t have any fun either. There are a lot of free and low-cost activities available, you just have to alter your perspective and don’t let your Christmas debt take control of your life.
Save, save, save
While it may sound apparent, the easiest way to pay off debt is to grow your savings and stay clear of unnecessary expenses. You might need to stop eating in restaurants once a week which can save you a surprising amount of money. Or you could catch public transport to work to save money on gas. If you feel inclined, cut up your credit cards! Do whatever you have to do to save money – being prudent is important. Get in control of your expenses and save as much as possible; you don’t want your holiday debt hangover to continue until the following Christmas!
Track your progress
Assess your progression each month to see how well your plan is performing. You might wish to make some changes if needed, and you’ll have a better idea of what changes are realistic depending on the past month’s efforts. If you’re being super disciplined and have over-performed, then reward yourself to commemorate your achievement. A reward doesn’t have to cost an outrageous amount of money, but it will improve your motivation to stick to your plan in times of need. By budgeting and tracking your progression, you’ll have better financial skills and hopefully won’t be stuck in the same position next Christmas!
If you can’t manage your debts, seek advice immediately
If you’ve genuinely tried to at least reduce your debts in a timely fashion and haven’t succeeded, you may be experiencing financial hardship. Rather than waiting and paying an increasing amount of interest, it’s better to seek advice from the experts before your situation becomes worse. There are many options available for those in financial hardship and they vary depending on your individual circumstances. For a confidential discussion on how to properly manage your debts, call Fresh Start Solutions Adelaide on 1300 818 575 or visit http://freshstartsolutions.com.au/bankruptcy-adelaide