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Paying Off Christmas Debt | St. Louis Bankruptcy Attorney

The holidays have come and gone, but that one magical day in December leaves millions of Americans in debt far into the New Year. Although the best way to pay off Christmas debts is to not overspend on the holidays in the first place, we do have some tips on getting your finances back on track in 2010.

• Figure out how much you owe. It’s easy to ignore debt – at least for a while. Sit down and calculate how much you owe and to whom.
• Make a plan for repayment. How much can you safely put toward your debt each month, and where will that money come from? How long will you give yourself to pay off the extra debt?
• Stay away from post-holiday sales. Even if you see a good deal, ask yourself if you need the product or if you would be better served by paying off your Christmas debts. Remember that if you buy someone on sale with a credit card, it will end up costing you more in the long run.
• Delay unneeded expenses. Just a few months of cutting back can help you cut out Christmas debt. Perhaps you take a month to not eat at restaurants – or to stay at home instead of spending the night out at the movies. Perhaps you delay a vacation or the new furniture you were planning for.
• Pick up extra work. If it is an option, try to earn a few extra dollars by picking up extra hours or doing odd jobs after work or on the weekends. Increasing your income is a surefire way to decrease debt.
• Next year, save ahead of time. Pick a reasonable Christmas budget and divide that amount by 12 – that’s how much money you will need to save each month to have happy holidays next year. And putting the money into short-term savings accounts can even make you a little money in interest.

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