This week’s first snowfall is a good reminder that most of us have to start planning for the holiday season! Our November temperatures had been positively balmy up to this point, but now there’s no denying it, only a few paycheques remain until the holidays are upon us.
Holiday Spending Hangover
You did what you said you wouldn’t do over the holidays and that was over spending. Unfortunately, what’s done is done, you beat yourself up over it, and now you just need to move forward to fix it.
First thing to do is to assess the situation. See how much you have spent over the holidays and how much damage was done to those debit and credit cards. Then figure out a payment plan. Determine which debts to pay off first and prioritize when you will pay them off. While doing this, take a look at how much you will be bringing in over the next couple of months and if you have money left over after paying off your fixed debts, put that money towards your extra debt you accumulated over the holidays. Also, stop all unnecessary spending habits such as shopping, dining out, movies and entertainment, and vacations. It may be painful to give up some of your luxuries for a while, but it will be worth it once you have paid off your debt.
Additionally, to find extra income during this financially trying time, try getting your taxes done early and you never know, you might receive a significant amount on your tax return that you can put towards your debt.
The final tip is to learn from this preventable mistake. Plan ahead for the next holiday season and you are sure to make all the right choices next year.
Creditaid with Bowes Knows
On January 2, 2011, Brian Denysuik had the opportunity to be on Barbara Bowes, Human Resource Specialist, CJOB radio show – Bowes Knows. They discussed a variety of topics from facing up to the holiday spending hangover to insights on how a Credit Counsellor can help individuals with their debt load. Click here to listen to the show – Bowes Knows.