The holiday season is gone and in comes the New Year. New ambitions, new dreams, new milestones, and a whole lot more of things to do. However, if you are not well planned, your finances might stand in the way, thanks to post-holiday debt.
Maybe you took out a Christmas loan that needs to be sorted before it triggers down to the rest of your 2019 finances. Maybe you used your credit card to get Christmas gifts, decorations and holiday destinations.
At the end of the day, all the holiday debt has to be repaid. EBC has got your back, and we took the liberty to get you a plan. Here is how to deal with your post-holiday debt:
1. Taking Stock
No soldier leaves for the battlefield without a plan, neither should you. Unpreparedness is one of the recipes for failure- it applies to your post-holiday debt too.
The first step of liberating yourself from all the debt is taking stock of all the debts you have. In case you used more than credit card note it down.
Do not leave the figures and interest rates too. It will help determine the amount of money you owe each one of your creditors. If you took a Christmas loan from a loved one or a personal lending company note it down too.
With all debt owed compiled, and having calculated the total figure, the next step is handling how to repay it all.
2. Debt Payoff Strategy
How are you planning on repaying your post-holiday debt without compromising your daily needs? It is not a must that you repay off all the amount at once, which might make you broke. But you can do something to relieve you of some debt and still keep your daily needs sorted.
This is where you make a budget- your income against your debt. On the debt side, since you already have the list from our first step, there are a number of ways to tackle it.
You can either consider repaying debts with the highest interest rates first. The longer it takes to settle such debts the more expensive it gets in terms of interest rates repayments.
You can also settle the little debts first. Those small amounts you got from your loved ones might seem too small but when not repaid in time could lead to bad blood.
You do not want to be in a position where your loved ones think you are nothing short of a tick that never repays debt.
Next time they might not be too generous. The small amounts you used on Christmas decorations of family dinners on your credit card can go first. With these paid, you actually get satisfaction and morale to clear the rest of the remaining post-holiday debt.
3. Debt Consolidation
If you thinking you will be drowning in post-holiday debt for the better part of 2019, debt consolidation might just be your saving grace. More so if you took multiple loans from various sources such as personal loan lenders and credit cards.
I know how hard it is juggling a number of creditors, each with their own repayment plans, terms, and interest rates. Why not consolidate all your holiday loans with some providers such as Lendvious or Opploans among others.
Debt consolidation ensures you have only one creditor to worry about. Plus, the terms might be better than dealing with all the creditors at once.
4. Cut Down Unnecessary Spending
If you are really going to make it through the first quarter of 2019 you will have to cut down on all the unnecessary expenses.
Start by reducing your food expenses, medical expenses or electricity bills and any other expenses you might think of. You can start making food at home instead of eating out, finding alternatives to using cable, or using LED lights to save on electricity bills.
Whichever method you choose, find ways to substitute your expensive characteristics with methods that will not cost you so much money.
5. Save, save.. and save!
You see the bucks you manage to get from managing your expenses, save them. you would be surprised how much money you might have by the end of January if you stick to the habit of saving.
Use our 30-day money saving challenge and see the difference.
6. Make some Extra Bucks
With post-holiday debt threatening the state of your wallet, it would not hurt to make some extra bucks on the side. Some extra dollars can help you repay some of the debt or even support your financial needs during those trying moments.
If you are good at proofreading people’s works, then do not waste the opportunity. Proofread anywhere can help you make some extra cash to help you sort out your post-holiday debt.
If you are good at transcribing, then go for it. Transcribe anywhere will even help you learn your way through transcribing, and you will make, too.
For those of you that are good at content creation and article writing, Iwriter could be the platform you are searching for. If you have any writing skills, are a graphics or web designer, you know can earn you money online, there are many places to visit.
Some of these sites can help you earn money by just doing what you are good at. And that too from the comfort of your home. Fiverr, for example, can be a platform to make some extra cash in different niches such as writing, business, lifestyle, music, and marketing among others.
While we are still on making some extra cash, did you know that you could rent your stuff for cash? Well, if there are items in your house that you do not want to sell- which is totally fine and good to raise some extra cash- then you can rent them. From your clothes to your house or unoccupied room and bicycle. The options are endless.
Whatever extra cash you make, remember our earlier rule of saving. Save it and use it to pay your post-holiday debt.
Just because the holiday season is over and you are left with a pile of debt the year does not have to be so bad- at least financially.
With good planning and dedication, you can get yourself out of the debt rut in no time. Sit down with your notebook, list down all the money you owe from your holiday expenses. Come up with repayment options and ideas as well as ideas on how to raise some extra cash.
By the time we are done with the first quarter of the year, your post-holiday debt will be a thing of the past. Hopefully, you can start saving for the next holiday on time to avoid being stuck in the same position again.