Did you spend more than you wanted to this past holiday season? If so, you are like thousands of others who pulled out the credit cards and bought more than they had planned to during December.
While a little extra holiday spending probably hasn’t completely messed up your finances, you still want to recover from your holiday debt as soon as possible. After all, the longer you are in debt, the more it costs you. The interest charges add up, and you find yourself with limited resources. The faster you can get out of debt, the better off you’ll be.
If you want to recover from your holiday debt as soon as possible, you need to make it a point to take action that will help you overcome your spending issues and pay down your debt. Be firm in your commitment to pay off your debt ASAP. Here are things you can do to speed up the process:
Go On a Spending Diet
Spending diets have become popular in recent months. The idea behind the spending diet is that you stop spending on all unnecessary things for a set period of time. Since you just went on a spending binge for the holidays, it probably won’t hurt to go on a spending diet.
Figure out what you have to pay. Bills, payment obligations, and food are all necessities. These are things you can spend money on during your spending diet. (However, you need to make sure your needs are actually needs. Eating out, even though you are buying food, doesn’t count as a “need.”) Everything else is cut from the budget so that you aren’t spending money on extra things.
You might be surprised at how much money you’ve been spending on unnecessary items. Cut them out of your budget, and use the money to help pay off your holiday debt.
Earn More Money
If you don’t feel like a spending diet is right for you, you could earn more money. Look for ways to increase your income. You can take a part-time job, do odd jobs around the neighborhood, or start freelancing. The important thing is to boost your income so that you can put the extra toward paying down debt so that you don’t end up caught in the debt trap.
You can even turbo-charge your efforts by cutting back on your spending while earning more. This will help you get out of debt that much faster, and truly put your holiday spending indiscretions behind you.
Of course, in order for this to work, you have to have the discipline to pay down your debt. Put together a plan and stick with it. If you don’t you’ll keep the debt — and probably add to it little by little.
In order to recover from holiday debt, you need to be serious about paying it down and not incurring any more. This means that you might not be able to buy some of the things you want, or you might have to work a little harder to earn more money. But once you pay off that holiday debt, you will be in a better financial position.