How to Deal With Debt Relief During the HolidaysDec 07, 2017
The holidays are a time traditionally spent with family and friends; that can mean extra spending on gifts, food and other expenses not typical of other months of the year. But what does that mean for your debt repayment plan? Finding debt relief and enjoying the holidays don’t have to be conflicting goals, where you must choose one or the other.
Here are three tips to help you have a festive season without breaking the bank, so you can keep your debt relief goals on track.
- Plan ahead to avoid overspending
The simple, yet effective idea of planning ahead can help you avoid taking on new consumer debt during the holidays. Make lists for everything you can think of including:
- Gifts for family, friends, coworkers, teachers, etc.
- Events you’ll be attending
- Special meals you plan to make
- Travel expenses including gas, lodging, food, etc.
All of these lists can mean extra spending. That’s where a plan comes in. Knowing your holiday expenses and agenda ahead of time can help you budget accordingly.
Practical Money Skills has an excellent holiday budget calculator that complements a regular monthly budget. If you need to build a budget from scratch check out My Money Coach for useful budgeting strategies.
- Don’t sacrifice debt payments for holiday spending money
Taking a month off from paying debts might seem like a quick fix to get holiday spending money, but the impact can have much greater consequences. There are plenty of ways to be frugal without sacrificing the joy and festiveness that comes with Christmas, Hanukkah, Kwanzaa, or whatever you choose to celebrate.
Here are some of our favorite personal finance and frugal lifestyle bloggers to help get you started:
- Look for opportunities to simplify your debt management
If you are carrying various types of consumer debt, that means multiple debt payments and interest rates. A debt repayment plan or a debt consolidation loan are two options that can simplify debt repayment – and might even free up extra cash in your budget.
Debt relief and enjoying the holiday season don’t have to be mutually exclusive. Knowing your debt repayment is on track can be a real stress reliever, and might even enhance your enjoyment of the season. After all, you’re one step closer to being debt free.