The holidays are officially behind us, and for many that means facing a mountain of debt accumulated over the season of giving. With travel, gifts, food and exciting events, it’s easy to rack up credit card bills during this time of year without proper budgeting. Any Miami debt defense attorney has undoubtedly seen this type of spending tarnish the financial future of a client. To help you tackle this problem before it grows even bigger, we’ve put together a list of ways for holiday debtors to get back on track.
1. Pay Off Debts
First things first: you will need to plan a repayment strategy for the debt that has been accumulated. Determine exactly how much will need to be repaid and when. Also, be sure to check your credit score to ensure all debts that may be bringing your number down are accurate. If there are discrepancies, it is best to address them sooner rather than later.
Typically, poor budgeting is much to blame for the money hole many people drive themselves into during the festive season. To craft an effective budget, you must take into account all of your expenses on a monthly basis, and delegate funds accordingly. Most people only take into account the fixed costs, but it’s important to include expenses for things like eating out and driving to work. The more you plan, the less tempted you will be to overspend.
3. Use Your Money Wisely
Maybe your relatives gifted you cash this year, or perhaps you received a hefty holiday bonus. Make sure these funds go to good use by quickly utilizing them to pay off your credit card debts. As for regular spending, it’s time to cut back. Limit excess spending, such as coffee runs and late night fast food. Your wallet will thank you later.
4. Plan for Next Year
There’s no rule against buying holiday gifts in March. In fact, by getting shopping done early, you’re likely to save a good bit of money. Plus, you’ll be far less likely to get caught up in last-minute frivolous purchases before heading to the holiday family get together.
5. Think Positive
It may feel like the road ahead is a long one (and it just might be), but with some effort and a lot of dedication, you’ll get to the end of it. What is important is to remember to stay focused and keep on budget.
If your holiday debt has you facing harassment from creditors, or you have questions about your rights as a debtor, we’re here to help. Call a Miami debt defense attorney at Graham Legal today.