How To Get Rid of Christmas Debt

By Subodh / June 7, 2010

Christmas is rightly referred as the season of expenditure. It is such a beautiful season. Everyone is excited and wants to make their level best preparations for the Christmas. This is the season of giving as well as receiving gifts. And in most of the cases, people forget to keep a budget and thereby start overspending. This is where the real problem starts.

Being generous is not a bad thing. Staying merry and gale is also good. But in this holiday season if you don’t have control over your temptations then you may end up with stressful Christmas debt. If your cash levels fall and you have some bare necessities to be fulfilled then you may have to borrow Christmas debt. And just like paying a liability, paying Christmas debt is irritating and stressful. The interest rates are heavy and thus it is vital to pay off the debts sooner.

If you want to get rid of Christmas debt then here are some of the guidelines that you need to follow:

Before you are planning to pay off the Christmas debt first make a list of expenses that you have done either through your income or credit card or through a borrowing. Gather all the credit card bills and compile them. Now, calculate the income sources that you have. Also determine the minimum amount that you are willing to pay, the minimum amount that is payable to the credit card company, the rate of interest and the savings that you will do. After analyzing the condition, take out the maximum and try to pay off as much debt as you can. Keep paying off credit card bills or Christmas debt as utmost priority. Do not spend on any extra ordinary items except for rent, health, food and gas.

You can also start earning extra just before or after the Christmas so that paying off Christmas expenses becomes really simple. You may opt for overtime or working part time for some other job too. In the start you may feel that a few cents are insignificant. But truly while making payments you will realize their worth. Join contests, tournaments and everything that will fetch you some extra pennies.

Sometimes, it may so happen that you had given money to someone, it may be a friend and you might have forgotten. And at such times reminding him of paying you off will really be quite useful. You may even get a bonus check in the Christmas season which you may use for paying off credit card debts. Make right use of your funds and see you will be able to solve your debt problem at the earliest.

Once you have started the strategy of your payments for the Christmas debt stick to it. And make it a point that you do not get into other debts. This will lead to piling up of debts. The best thing will be to have a good plan and stick to it.