The holiday season is such an enticing time that often leads to overspending, impulse spending, and ultimately getting into more debt. If you are struggling to find ways to pay off your holiday debts quickly, you should know that there is still hope. Here are a few tips that may help:
- Pay Off High Interest Debts First. Although it is not recommended to use your credit cards to buy gifts over the holidays, you may not be able to avoid it. In case you have accumulated credit card debts, you need to make sure that you pay off the high interest debts first. Therefore, the first step to paying off your holiday debts is to pay the minimum on all the cards you have and then focus your efforts towards the one debt with the highest interest rate. This will accelerates the retirement of high-interest debts.
- Turn Unwanted Gifts Into Cash. Many of the gifts that you receive for Christmas are not exactly what you need or want. You can turn these unwanted gifts into cash in several ways, but your best bet is returning it to the store for cash. That is the quickest way to get some money on those tacky gifts. You may get gift cards in exchange, especially when you don’t have a receipt for the gift. However, you can still sell that in online gift card marketplaces. You can also try selling the respective gifts to get some money out of them.
- Save Money On Luxury Habits. You have to forget all about the Starbucks coffee you are getting every day on your way to the office or the lunch you are ordering instead of preparing it from home. Going to the movies or eating out are not to be considered this New Year when you are trying to pay off your holiday debts quickly. These are just some of the compromises that you will have to make to achieve your goal. Stimulate yourself and think about all the money that you are throwing away on interest and penalties as long as you postpone reimbursing your credit card loan. Use all of the extra money that you gain by saving on these luxury habits and pay off your debts.
Debt comes with a bad reputation. In addition, it really behaves like a real snowball that keeps getting bigger and bigger as long as you roll it over. So no matter what you do, you have to put forth your best efforts this New Year to stop the snowball from rolling around. Remember that debt doesn’t get any smaller and does not stay unchanged when you do nothing. Unlike a snowball, debt continues to grow even when you do nothing. Don’t wait around for your debt to get smaller, simply start paying it off. You may have to make some serious and painful efforts throughout the first months, but the feeling of being debt-free is reward enough.
If you find yourself deep in debt after the holiday season, consider a personal loan from Fast Access Finance. You can use your loan to consolidate your high interest debts and start making just one payment to pay down your debt.