The 12 Debts of Christmas Part Three
Holiday Debt – How to Manage Money
I just spent my next months wages
Fa-la-la-la-la, la-la-la-la
And this spending feels contagious
Fa-la-la-la-la, la-la-la-la
I just bought a diamond necklace
Fa-la-la-la-la, la-la-la-la
I think that my spending’s reckless
Fa-la-la-la-la, la-la-la-la.
My credit cards are at their limit
Fa-la-la-la-la, la-la-la-la
All my gifts should have been hand knit
Fa-la-la-la-la, la-la-la-la
Now at least I have a reason
Fa-la-la-la-la, la-la-la-la
To be sad this Christmas season
Fa-la-la-la-la, la-la-la-la
16 days until the big day. The evenings are getting cooler, daylight is getting shorter and chances are your wallet is bulging with receipts. Right now is when you should do something about that and remain in control of your spending. You don’t need to break the bank this year and here are a couple of tips that can help you discover how to manage money and be debt free when your credit card statement comes this January.
HOLIDAY DEBT TIP 5: Combine Your Balances
You might have three or four separate credit cards with balances on them. It’s time to combine them into one. Prior to heading out to the malls with a bulky wallet in toe, shop around for one ‘low interest rate balance transfer credit card’. After you discover one that is right for you move each of the balances onto the one credit card. After all, making a single monthly payment on one individual credit card will be far more productive than attempting to pay many balances off of more than one card.
If you are unable to locate a ‘low interest rate balance transfer credit card’ then you should find another approach. Snowballing your debt (now that’s Christmas irony) or Debt Stacking. In short, Snowballing or debt stacking is the process of making a large payment to one credit card while you make the minimum payments on each of the other credit cards. Once you’ve paid off the first card take that lump sum and add it to the next credit card. Repeat this process until all of your credit cards have been paid off. The only way this will work is if you don’t create more debt. You won’t notice any progress until next year but I can promise that it does work and is a terrific way of learning how to manage money.
HOLIDAY DEBT TIP 6: Buy in Bulk
Now, more than any other time of the year is perfect for bulk purchases. You might spend a little more, but January will be easy for shopping. Every purchase made should be on sale and in bulk. Every grocery store wants your business and put out the best flyers in December. Spend a few hours searching for the best deals. There are also endless mountains of coupons or deals you can find online to help lessen the cost. Those coupons range from candies, to deals on DVD’s and even clothes. Set aside a a couple of minutes every day to find these deals. Every penny you save makes it all worthwhile. Christmas can be incredibly expensive because we all tend to spend more than we plan but by finding deals you can ease the burden on your wallet.
For my next post there will be a fun filled carol you can share with family and friends and a couple more ways of how to manage money and remain debt free this Christmas!
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