This is a sponsored post by Utah Credit First and Today’s Mama. I was compensated for the post, but I have a strong belief in having good financial goals and habits that give you financial peace of mind which is why I’m sharing this post with you.
This year was the first time we actually planned out savings for the holidays. We divided it into 3 months instead of having huge credit card payments all in December. And this year we are actually putting away money every month starting now to prepare for next December (Tip #4).
Of course we haven’t always done it this way.
If you have credit card debt from the holidays don’t procrastinate when it comes to
ridding yourself of the burden it brings. Here are five tips to get
started on paying off debt as well as some good financial advice for everyone!
ridding yourself of the burden it brings. Here are five tips to get
started on paying off debt as well as some good financial advice for everyone!
1. Review Credit Card Statements
You
may be tempted to slide those unopened credit card bills and bank statements
right into the shredder—but don’t act too quickly.
may be tempted to slide those unopened credit card bills and bank statements
right into the shredder—but don’t act too quickly.
Take
the time to carefully study your credit card charges for any suspicious
spending. Identity thieves are particularly active during November and
December, when consumers are less likely to notice unauthorized purchases. If
you do find questionable credit card charges, be sure to contact your financial
institution immediately.
the time to carefully study your credit card charges for any suspicious
spending. Identity thieves are particularly active during November and
December, when consumers are less likely to notice unauthorized purchases. If
you do find questionable credit card charges, be sure to contact your financial
institution immediately.
2. Create a Financial Action Plan
Paying off debt always makes it near the
top of Americans’ New Year’s resolutions lists. Financial overindulgence during
the holiday season may compound the challenge of digging out of debt.
top of Americans’ New Year’s resolutions lists. Financial overindulgence during
the holiday season may compound the challenge of digging out of debt.
Making
an action plan is the first step. Make a detailed inventory of all credit
accounts including balance, minimum payments and interest rate information.
Paying extra towards the smallest balances, while still making the minimum
payments on all others, is said to be the fastest way to eliminate debt
according to personal finance experts. But design a realistic plan that will
work for your household—and stick with it.
an action plan is the first step. Make a detailed inventory of all credit
accounts including balance, minimum payments and interest rate information.
Paying extra towards the smallest balances, while still making the minimum
payments on all others, is said to be the fastest way to eliminate debt
according to personal finance experts. But design a realistic plan that will
work for your household—and stick with it.
3. Consolidate and Eliminate Debt
If
you are currently carrying balances on high-rate cards, it may be time to
consolidate your debt with a low-rate
balance transfer. This is especially true if you opened store cards for
discount offers; these cards often carry rates up to twice that of other credit
accounts.
you are currently carrying balances on high-rate cards, it may be time to
consolidate your debt with a low-rate
balance transfer. This is especially true if you opened store cards for
discount offers; these cards often carry rates up to twice that of other credit
accounts.
Consolidating
your credit card debt to one
low-rate card can make it easier to manage your payments while your cash
goes towards the outstanding balance, not towards finance charges. For example,
Utah First now has a 4.95% APR for twelve months when you open a new Utah
First Visa® Platinum Credit Card—that could mean
serious savings on interest fees. (And, remember, you have to cut up the old
cards or risk driving the balances up again!)
your credit card debt to one
low-rate card can make it easier to manage your payments while your cash
goes towards the outstanding balance, not towards finance charges. For example,
Utah First now has a 4.95% APR for twelve months when you open a new Utah
First Visa® Platinum Credit Card—that could mean
serious savings on interest fees. (And, remember, you have to cut up the old
cards or risk driving the balances up again!)
4. Set Budget for Next Year
Another
good reason to review your holiday spending is to begin preparing for next
year. Take a little time to compare what you planned to spend versus your actual spending. This information will
help you budget more accurately for the next holiday season.
good reason to review your holiday spending is to begin preparing for next
year. Take a little time to compare what you planned to spend versus your actual spending. This information will
help you budget more accurately for the next holiday season.
Be
sure to look at other added expenses, not just gifts. The holidays often
increase expenses like groceries, gas, entertaining, and travel. Add these costs
into your 2015 holiday budget and start setting cash aside each month.
sure to look at other added expenses, not just gifts. The holidays often
increase expenses like groceries, gas, entertaining, and travel. Add these costs
into your 2015 holiday budget and start setting cash aside each month.
5. Rethink Holiday Spending
If
the stress of holiday debt is overshadowing the cheer, it may be time to
rethink how you and your family celebrate the season. Take a moment to evaluate
which parts of the season you enjoy most. Is it the food? Walks to enjoy
outdoor lights? Or watching old family movies?
the stress of holiday debt is overshadowing the cheer, it may be time to
rethink how you and your family celebrate the season. Take a moment to evaluate
which parts of the season you enjoy most. Is it the food? Walks to enjoy
outdoor lights? Or watching old family movies?
Talk
to your family about how to make celebrations more meaningful, not more
expensive. Homemade gifts, community volunteering, potluck dinners and drawing
names for gift exchange can simplify holiday spending and may even make the
holidays more meaningful.
to your family about how to make celebrations more meaningful, not more
expensive. Homemade gifts, community volunteering, potluck dinners and drawing
names for gift exchange can simplify holiday spending and may even make the
holidays more meaningful.