How to Manage Money and Eliminate Debt

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The 12 Debts of Christmas Part Two

Dashing through the malls

with credit card in hand

buying big and small

I don’t understand

I wish I had more cash

but my credit card I’ll use

I spend it in a flash

Oh, I have the holiday blues

Oh, Jingle Bells my credit smells

and I think I broke the bank

Oh, I wish I was debt free

but I have myself to thank

Oh, Jingle Bells I’m penniless

and I have some bills to pay

I still have some things to buy

what else can I say

How to Manage Money and Eliminate Debt

Debt and the holidays don’t have to go hand in hand. Here are a few tips for how to manage money in this holiday season and how to start tackling your debt before it becomes too much.

HOLIDAY DEBT TIP 3: How to Avoid More Debt

Spend Less – In my family Christmas was a time for sharing laughter, playing games and breaking the bank. We all spent more than we should. When we realized that it was the company and not the gifts that were important, Christmas changed for the better. Rather than buying one gift for each person, we started to draw names and bought just one gift for one person and had a spending limit. Our limit was $100 but it doesn’t have to be that high. The thought really does count and sometimes a $25 gift or a homemade gift means more to a person then a new PS3 or I-POD.

Turn Off Those Lights! – You may be in the Christmas spirit and want to tell the world how wonderful this time of the year is, but for heavens sake turn off those Christmas lights. Those little suckers zap so much money out of your wallet. Try only having them on from 7 until 10 and wait until the middle of December before you start lighting up.

Share The Duties – Rather than preparing an entire meal for the whole family of aunts, uncles, in-laws, cousins and friends share the responsibilities. Have Aunt Julie bring her world famous mashed potatoes, your in-laws can bring their favourite bottle of wine, mom and dad can take care of dessert and your crazy cousin Johnny can supply the rum and egg nog. Don’t put the entire dinner on your shoulders and on your wallet. Sharing responsibilities will help show you how to manage money and take away some of that financial burden.

Exchange Presents on the 29th – Before you go out and hit the malls maybe you can wait. Boxing Day is the perfect time to go shopping. The malls may be insane but the money you can save is almost worth that extra time and frustration.

HOLIDAY DEBT TIP 4: Start Tackling Debt Now

You have to start paying more than the minimum. Use the debt stacking approach I have mentioned in some of my previous posts. Tackle your lowest debt first and wipe it off the map. Use any extra money you have to get rid of that balance. I can’t stress enough how important and how valuable a tool debt stack actually is. It’s more important that you take your finances into consideration than it is to rack up even more credit card debt.

For my next post there will be a heart warming song you can sing and I will include two more tips on how to manage money and remain debt free this holiday season!

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