Watch Out For That Holiday Debt

Even though the holidays are over, it’s never too early to get ready for next year.  During the holidays, many people fall into debt, but with careful planning, you can get through without financial worry.  I recently spoke to the Daily American newspaper about the growing problem of holiday—and everyday—debt.

If you find yourself falling into debt and don’t know why, here are some simple ways to discover unnecessary spending:

• Write down everything you spend for one month. You might find you’re spending $5 every morning for coffee and a bagel. That really adds up.
• Try to go for two months operating on cash only. No credit cards, no deferred payment purchases. You’ll find out what’s necessary and what’s not.

And here are some holiday-specific tips on saving money:

• Open a Christmas Club account at your bank.  Just $50 from each paycheck gives you $600 to work with by the next December.  This way you’re less likely to turn to your credit cards.
• Don’t use layaway.  If you’re using layaway, the purchase is probably beyond your budget to begin with.
• If you’re hosting a party, make it potluck.  You’ll save a ton of money on food and drinks.
• Buy your decorations and wrapping paper when they go on sale after the holidays.
• Turn off your electric light displays overnight.

Finally, tackle your debts one at a time. We know that debts can be overwhelming and if you try to take them on all at once, you’re more likely to fail.  Try to pay off your smallest debts first and work your way up.

If you’re having money troubles and seeking advice, look to the full service debt relief law firm of Harold Shepley & Associates.  We can provide you with all of the information you would need to make a decision about your future.   Contact us today to find out more information on your debt relief options.

By Harold Shepley | Published February 9, 2012 | Posted in Debt | Tagged debt, Harold Shepley & Associates, holiday debt, Pennsylvania | Leave a comment