The Christmas Bills are Here! What now?
Christmas is over. New Year & New Year’s Eve are over. The Holiday Season is over. Many of us have taken down the tree & the decorations & put them away until next year. So, of course, it’s time now for the dreaded holiday bills to arrive. Before panic sets in, I’m going to tell you how to deal with the bills & how to prevent next year from being Ground Hog Day. Wouldn’t it be great to have a Holiday season without big bills coming due in January?
About 35% of Americans ran up an average of $1550 in credit card bills this holiday season. Some people, however, spent more than that. Either way, if that’s the only debt that you have, then make a plan to pay extra each month & pay it down as quickly as possible to avoid the extra interest bite that 19%+ interest will take out of you. And read down towards the bottom on how to avoid the same issue next year.
For too many people, that $1550, or more, went on top of already existing debt. That debt might be other credit card debt, student loans, vehicle loans, etc. So, this is the time of season where people can become very aware that their debt is growing, and perhaps getting out of control. If you’re in this category, it becomes extremely important to put together a plan, including a working budget & debt payoff goals. Without those tools, it becomes very likely that the debt will continue to grow & next December will add even more debt. If you’re able to do this on your own, that’s great! Put together a 2023 plan & goals to become debt free! If you need help putting together a plan, including goals & a budget that actually works, I can help. Click here to set up a Complementary Consultation to see if Financial Coaching is a fit for you.
Regardless of whether you a small amount or larger amount of debt, you can avoid debt next Christmas season. First, start by looking at what you spent this year. Check your credit card and bank statements to add it up. Then, ask yourself if the amount was reasonable. Did you overspend? Where did you overspend? Then put together a plan to assess what you should be spending next year. For example, let’s assume that it adds up to $1550, which was the average amount of credit card debt people took on during Christmas. Divide the $1550 by 12, which for this example equals $130, and save that amount each month. Save it in a standalone savings account to assure that it will be used for the intended purpose. Then, next December, by saving a relatively small amount each month, voila! You have the money you need to pay for Christmas! No more extra debt & no more January credit card bills!
The time to start is now! Every month you wait, the more money you’ll need to save each month.
As always, if you need help with your debt plan, goal setting and/or learning how to create a working budget. If you really want to start living the life you want to live instead of working to pay the banks, then click here to setup a Complementary Consultation. Find out how to make it happen for you & see if coaching is a fit. And don’t forget to enter your email below to receive my weekly posts.
