Tips To Getting Your Finances Back On Track After The Holidays

The holidays are now over and you suddenly realize that you’ve spent a lot more money than you could afford and panic is starting to set in. Your credit cards are a mess, your bills are piling up and your bank account balance is plunging, so what do you do?

First you must face the facts. The best time to act is now. If you ignore your bills, you’re only going to get yourself into a greater financial mess. Call your credit card companies and your service providers to see if you can negotiate reduced interest rates or fees. Use whatever negotiating tactics you must to try and convince them to lower your fees. If you decide to transfer your debt to a 0% interest credit card, just make sure that you cut up any old cards so that you’re not tempted to use the old card with a zero balance and put yourself in greater debt.

Decide which bill to pay down first. You may decide to pay off the bill with the smallest balance as this will free up some surplus money quickly which can be used towards paying off another debt. You may decide to pay off the bill with the largest balance for similar reasons. You could pay off the oldest bill, the bill with the highest interest or the bill of the company you need to use again and won’t be able to unless you’re paid off so decide what works best for you after discussing what can be done with each of the providers you have spoken with. You may have to juggle the debts each month so that you don’t get too far behind.

Find a way to make more money. If you’ve already cut back as far as you possibly can then you may have to take up a part time job. This is not the time to look for the ideal part time job, any job will do. This is only temporary but it’s critical that you stay afloat.

Give something up. You may have to give up a luxury that you have for yourself such as hairstyling or grooming, manicures or pedicures or give up cable TV for a few months to free up some money that could be used towards paying down your debt. Cancel your landline and use your cell phone for all calls. If you place long distance calls then use a calling card in the meantime just until things become more settled for you. You may find that this a more beneficial way for you and continue once you’re debt is clear.

Plan for next year. To avoid getting into holiday debt next year, you may want to start budgeting once you’re afloat. Purchase gifts, wrapping, decorations or any holiday expense throughout the year when it’s on clearance so that you’re not spending a big lump sum during the holiday season.

Take it one day at a time, don’t be afraid to ask for help if you need it and take the time to enjoy your life, family and friends.

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