Holiday Debt – How to Manage Money

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The 12 Debts of Christmas Part Three

I just spent my next months wages

Fa-la-la-la-la, la-la-la-la

And this spending feels contagious

Fa-la-la-la-la, la-la-la-la

I just bought a diamond necklace

Fa-la-la-la-la, la-la-la-la

I think that my spending’s reckless

Fa-la-la-la-la, la-la-la-la.

My credit cards are at their limit

Fa-la-la-la-la, la-la-la-la

All my gifts should have been hand knit

Fa-la-la-la-la, la-la-la-la

Now at least I have a reason

Fa-la-la-la-la, la-la-la-la

To be sad this Christmas season

Fa-la-la-la-la, la-la-la-la

Holiday Debt – How to Manage Money

Sixteen days until Christmas. The nights are getting colder, the days shorter and chances are your wallet is bulging with receipts. Now is the time to do something about that and stay ahead of the game. You don’t have to break the bank this year and here are a couple of tips that will help you discover how to manage money and be out of debt when the credit card bills arrive in January.

HOLIDAY DEBT TIP 5: Combine Your Balances

You may have 3 or 4 different credit cards with balances on them. It’s time to combine those into one. Before you head out to the malls with a bulky wallet in toe, shop around for one low interest rate balance transfer credit card. After you find one that is right for you transfer all of those balances onto a single credit card. After all, making one monthly payment on one single credit card will be far more productive than trying to pay the balance off of multiple cards.

If you are unable to find a low interest rate balance transfer credit card then it’s time to use another approach. Snowballing your debt (I love the Christmas irony) or Debt Stacking. In short Snowballing or debt stacking is the process of making a large payment to one credit card while continuing to make the minimum payments on your other credit cards. Once you have paid off that first card take the lump sum and add that payment to another credit card. Repeat this process until all of your credit cards have been paid off. The only way this will work is if you don’t add more debt. Unfortunately you won’t see any progress until the new year but trust me, it works and is a great way to learn how to manage money.

HOLIDAY DEBT TIP 6: Buy in Bulk

Now, more than any other time of the year is perfect for buying in bulk. You might spend a little more, but January will be a breeze for shopping. Buy everything on sale and in bulk. Grocery stores all want your business and put out their best flyers in December. Spend a day shopping around for the best deals. There are also endless mountains of coupons and deals you can find on the internet to help lessen the cost. Those coupons range from candies, to deals on electronics and even clothes. Take a few minutes each day to find these deals. Every dollar you save is worth it. Christmas can be incredibly expensive because we all tend to spend more than we plan but by finding deals you can ease the burden on your wallet.

For my next post there will be a fun filled carol you can sing with family and friends and a couple more tips on how to manage money and remain debt free this holiday season!

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