Everyone gets so excited when the Christmas season is fast approaching. The Christmas spirit creates a utopian environment where everyone is jolly and generous. In fact, giving and receiving gifts are just some of the most exciting activities that both young and old look forward to.
Due to this merry, giving season, a lot of people forget that they do have a budget to follow, often spending beyond their means. When the holiday season is over, many end up with Christmas debt. At first, people may not realize just how much they owe, but once the bills start coming in, and cash starts falling consistently and irritatingly short, then the debt's burden is felt.
Just like any type of liability, paying off Christmas debt can be burdensome. Some Christmas debts even carry over until the next Christmas, and since it is hard to avoid spending too much during the holidays, the debts just keep piling up. You must face the problem straight up though. The sooner the debt is settled, the less interest to pay. Here then are ways to can get rid of this nagging obligation fast and effectively.
Sum it Up
Before you start paying for your Christmas debt, calculate every expense you had during that time. Gather every credit card bill that you have and sum it all up. Once you get the exact figure that you have to pay, determine how much money you are willing to subtract from your salary in order to pay it off. Set a reasonable deadline when you think you will be done paying the debt, and make sure you stick to that plan.
For example, if you owe your credit card company $1000, and you plan to pay it off in five months, then make sure you set aside $200 from your paycheck every month and make sure you don't spend that money on something else.
Damage Control
If you are really serious about paying your debt as soon as possible, you have to make sure that you don't do anything to add to it. Resort to every measure that you can think of to prevent you from spending money – especially on items that you don't really need. Put yourself on a credit card spending hold or have a trusted friend or relative keep your credit card from you until you've paid your debt down to the last penny. If you really want to pay your debt on or before the time you set, make sure that you spend only on essential items like food, gas, and rent.
Earn More Money
The best solution is to earn more money, which is easy to say but difficult to do, of course. No, it does not mean you must quit your job and look for another that pays better. You can just take little steps that might eventually go a long way. You can hold a garage sale, get a part-time job, or simply do consistent overtime work. It may seem that the extra money you will be earning is insignificant, but really, it does help pay off your obligations faster. If you have certain skills or talents, use them to earn more money. If can sing pretty well, join contests or sing for gatherings. If you play sports, join tournaments. Simple things like that can get you off the hook from your debts a bit faster.
Make use of Unexpected Funds
With your less-than-enviable debt status, welcome monetary surprises can surely put much more than a smile on your face. Your friend might suddenly pay off a debt to you that you'd forgotten, or you might get a bonus check from your boss or a tax return. Use this extra money to get rid of your debt. Not only do you get to pay your debt faster, you also get to pay less on interest rates.
Stick to your Plan or Schedule
All of these will be a waste of time and effort if you don't strictly follow your plan or schedule. Sales and discounts in shops and malls can be very tempting. Remember that if you spend more, you may end up adding more to your debt. Motivate yourself by giving yourself a prize when you pay your debt on or before schedule. You can either buy yourself a new pair of shoes, eat out, or buy a new shirt to wear just to keep you from straying away from the game plan. Just make sure to pay for your prize with cash so you don't start the cycle again!
Staying Out of Christmas Debt
After successfully sticking to your schedule and finally paying off your Christmas debt, it is best to avoid getting into it again. We all know how difficult this task can be, so make the necessary prudent adjustments. Months before Chirstmas comes, plan ahead by allotting a budget that you have to spend for buying gifts, food, and other expenses. As much as possible, shop early for gifts so you can spread the expense over a longer time period. Prices tend to go up when the the Christmas shopping rush begins. Also, all that rush can easily let you forget about your budget, getting you to spend more on items that you may not want or need.
Even Santa Claus has a list of gifts to give out. Having a list keeps you more organized. It also prevents those impulsive buying habits. When it is not on the list, don't buy it.
Your main objective is to at least minimize your debt, so try to think of alternatives to costly gifts. You can find solace in the rather cliche yet practical “It's the thought that counts” saying. Instead of buying a snazzy gift, give some people a card and a nifty, improvised gift that is not too expensive for your debt-burdened pockets.
Once you successfully stay out of debt, or significantly minimize it, then the "merry" in “Merry Christmas” finally becomes more significant to your situation. You don't have to worry for the rest of the coming year where to get the money to settle your debts.