The holidays are done a dusted, the gifts have been opened, the Christmas feast has been eaten and the decorations have been put away, but all the joy of the holiday season can quickly vanish when our first bill arrives and we snap back to reality.
There are many of us that struggle financially in January and this is due to our overspending on gifts, meals and holidays and the consequences of this overspending come in January when we start getting our bills, but the debt that you racked up over the holidays can be managed.
Check out these tips that can help you get your finances back on track for the New Year.
What Are You Dealing with?
The first that you need to do is evaluate what you are up against, so get all your bills together and determine what you are dealing with. You need to take some time and go over all your credit card bills and bank statements and then look at your regular bills like your mortgage, utilities, subscription services and so on. You will need to have the full picture in front of you so that you are able to come up with a plan that will work with your current situation.
What’s More Important
Once you have everything that you owe in one place, you will need to determine when all your payments are due so that you can get them in order by priority. If you are carrying around credit card debt after the holiday season, then take a look at the terms and work on paying the credit cards that have the highest interest first and make sure you stop using those credit cards. If you use your credit cards whilst you are trying to get out of debt, you will just be caught in a vicious cycle.
Wait…Keep reading for more tips about your New Year finances…
That All Important Budget
We all know this, you have to have a budget and the value of a budget should never be underestimated, especially when you are trying to get out of debt and change your spending habits. If you have already gone over all your debt and bills, then your budget is half done. You can get a good assessment of your financial needs by writing out all your expenses. You can then determine what you will have left after all your bills, what you can realistically put towards your debts and find places where you are able to make cutbacks.
Get Your Family On Board
When you have a support team in place, it can be easier to stick to a budget and eliminate debt. It is better for your family when you are financially healthy so speak to your family about spending habits and that they may need to change, but in the long run, they will thank you for it. Also, showing your children healthy spending and debt habits will help them to see the value of money and develop healthy habits when they are older.
Time to Save
There are a number of ways that you can save so that you can reach your debt pay off goals. You can use coupons, shop for deals, learn new recipes to avoid takeaway and eating out, return gifts that you won’t use, sell items that you no longer need and so on. You will be able to find some great ways to save money and make cutbacks but without feeling like you are constrained, so give it a think and see what you are able to do.
It can be difficult to change your spending habits, but with some discipline, it can be done and anyone is able to when they work hard and your holiday debt hangover can become a thing of the past, but make sure you start saving now for the festive season to avoid debt next year.