Happy New Year to you all!
Holiday season is over. We have stepped into a new year with new aspirations and full of optimism.
However, no matter how much we try to avoid holiday debt, often we step into the new year with debt and feel worried about how to repay it.
Though the celebrations were not much this time, yet you might have incurred debt since many have suffered financial difficulties in the last year. And, we had to enjoy a little bit to welcome the new year with full optimism. Hopefully everything will be fine soon.
Coming back to our discussion, even if you have incurred holiday debt, don’t worry. Just take the initiative to repay it as fast as you can.
Here are a few tips to repay holiday debt with ease.
Do you have a budget? Review it and make modifications to it if you want to save more. However, do not make it too unrealistic that’ll be too difficult to follow. Instead, you can follow the 50-30-20 strategy wherein you save 20% on your monthly income and meet your necessities with 50%. However, from the 30% designated to fulfill your wants, you can save as much as you can.
And if you don’t have a budget, plan one, even if you’re able to save a substantial amount every month. It will help you to know where your money is going.
You can check out different budgeting methods and choose the one you like the most.
Cut down expenses
The holiday season is just over. You surely have bought a few things even if it’s not much. So, try to cut down expenses for the time being. For a few months, curb your wants and concentrate on saving more. Ultimately it will help you purchase things as per your wish since you’ll be free of holiday debt, too.
Before purchasing any new thing, ask yourself, do you really need it? Do not buy now if you can delay it. First of all, repay your debts.
Earn a little extra
Extra income always helps when you want to repay debt or want to make your financial life better. And new year also comes with fresh opportunities and optimism. Therefore, find out ways to earn more. You can browse through the internet to find some suitable side gigs. Often it’s interesting to take up a survey and earn a few dollars. Remember, every cent helps when it’s about paying back debts.
Work out a debt repayment plan
A debt repayment plan is important to track your progress. Remember a plan always helps instead of just putting your money toward paying off debts randomly. So, first of all, check out whether or not you can pay it off yourself. It shouldn’t be a problem if the debt amount is not huge. However, if you’ve incurred debt that you can’t manage yourself, then it’s better to resort to professional debt payoff options.
Without any more delay, you can contact a consolidation or settlement company to take help regarding paying back debts.
If you can repay your holiday debt in full, then enrolling in a consolidation option is probably the best solution. However, if you can’t repay your debts in full, then a settlement program might help you to solve your debt problems.
You can talk to a debt counsellor to choose the best debt repayment option suitable for your financial situation.
Finally, work towards fulfilling your resolutions. You must have made certain resolutions. Make a plan to achieve your financial resolutions. While doing so, do not forget to achieve your other resolutions, too.
Make this year a fulfilling one.