Keeping Your Holiday Debt in Check

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How would you like to avoid the credit card statement shock this January? With some careful planning and some forethought you can do just that. Major credit card companies report a significant rise in credit card purchases between Thanksgiving and Christmas. Here are several steps you can take to keep your spending in check and to pay what holiday debt you have in a timely manner.

Make a list and stick to it. List all the people you are going to buy gifts for and decide how much you can afford to spend for the season. Assign each name a dollar amount and do not deviate from you plan. If you are able to stick to your plan, you will have an anxiety-free January.
Lock up your credit cards. Most of the items you charge can either be paid for in cash or done without. I did not have credit cards for twenty years and did not feel like I was missing out on anything without them. Giving your credit cards a break will help you get your financial situation under control.

Pay as much toward your balance as you can. Credit card companies like people who pay only the minimum. It keeps you in debt longer and as a result you will be paying your creditors more in interest than some one who pays as much as they can towards their balance. If you have $5000 balance and pay only the minimum it will take over 8 years to pay your balance in full. If you pay double the minimum, you can have your balance paid off in about two and a half years.
Buy only what is necessary. Ask yourself if this purchase is really something that you need or are you buying it because it is on sale. If you charge it and don�t pay it off in full when you receive the bill, you are not getting a deal. If it is not an emergency, it should be paid for in cash.

Find extra money. If you are having problems making ends meet, you might consider getting a second job. Another way to increase you income temporarily, would be to sell household items. Ebay can be very lucrative when it comes to subsidizing your income. If you have two cars, you may want to consider getting rid of one of them to add to your net worth.

If you have your credit card spending under control and carry only minimal balances you may want to consider applying for a 0% or low interest rate credit card. Another option is to open a home equity line of credit for emergencies. The interest rates on this type of loan are also very low and it is also tax deductible.

Know when to ask for help. If you feel yourself sinking deeper into debt, don�t be afraid or ashamed to seek help. The sooner you admit things are out of control, the sooner you will be able to develop a plan to get your finances back on track. There are many reliable agencies that will be able to help you develop a debt management plan for repayment of outstanding debts. There is also education available that will educate you on getting out of debt and help you understand how you got there in the first place.

With a little bit of planning and forethought most of us should not be surprised each month when we receive our credit card statements. If you are, it might be time get some help or at the very least make some lifestyle changes.