5 Tips for Recovering from Holiday Spending (Part 1)

January 15, 2014

Living on cash for a while and facing your credit card bills head on are two effective ways of recovering from holiday spending.

Living on cash for a while and facing your credit card bills head on are two effective ways of recovering from holiday spending.

Is your wallet and bank account suffering from a serious financial hangover due to your holiday spending? It’s all-too-common for consumers in the wake of the Christmas holidays to be facing more credit card debt than they had anticipated, and seeing these numbers on paper can make the overspending of the holidays hit home in a real – and likely painful – way. Here and in a forthcoming Part 2 of this blog, we will explore some of the things you can do to get your finances back in order after some lavish holiday spending.

  • Financial Recovery Tip 1: Live on cash for a while – One of the best ways to avoid continuing to rack up your credit card bills in the New Year is to carry cash and use it for your day-to-day purchases (like gas, groceries, etc.). If you rely on cash instead of your credit cards, you will force yourself to stay within a specific spending budget and, as a result, will prevent yourself from accumulating additional debt.

    For those who choose to live on cash for one month (or maybe a few months), it can be helpful to withdrawal the specific amount of money you have allotted to spend in a certain week (so you don’t have to go to the bank multiple times in a given week) and to only carry your daily allotted spending money in your wallet (keeping the rest of the cash stowed away at home so you aren’t tempted to spend it).

  • Financial Recovery Tip 2: Face your credit card bills head on – Recovering from your financial holiday hangover will require you to face your credit card bills head on and start paying them down as much as you reasonably can. This means that you should NOT ignore the bills or put them off, as this will only hurt you in the long run (both in terms of your credit score and the overall debt you face, as interest will likely be accumulating on this debt).

    If you can only afford to pay the minimum payments currently, then do so. If possible, however, try to pay above the minimum payment on one or more cards so you can make some real headway in paying down your debt.

Stay posted for our upcoming Part 2 of this blog.

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Categories: Blog, Debt Relief, Finances, Financial Recovery, Financial Tips