Holidays can be expensive BUT you don’t have to go in debt over the holidays and if you do its not the end of the world. Holiday overspending can truly be an issue if you max out all of your credit cards or even over draft your bank account and drain all of your savings in hopes to afford the holidays.
What to do if I’m in debt over the holidays?
The first step is to analyze the damage. Did you max out credit cards? Overdraft your bank account or did you simply just drain your savings account?
The next step is to make a plan to get out of the debt. You may need to cut down your spending and cut subscriptions to sock towards the debt.
Transfering balances such as using your savings to help pay off credit card debt is another possibility which will help. If that’s not an option you could always use some of your investments (stocks, etc…). While not the smartest thing to do its better than being so far in debt you can’t pay your mortgage.
The last resort is debt consolidation to help pay off your credit cards. This is the last resort.
Make a plan for next year!
Its very important to avoid going into debt over the holidays by simply budgeting and making a plan to help from going into debt. The dates don’t change so why not put away money in a high yield savings account so you’ll be prepared next year.