The New Year is here and with that comes new resolutions. While some wish for health and prosperity in the New Year, others are just hoping to recover from the exhaustion on both your body and your bank account.
“While everyone is in the holiday spirt the cost of presents, attending/hosting parties, and even holiday traveling sometimes slips our minds,” said Melanie Duquesnel, president and CEO of BBB serving Eastern Michigan. “When the harsh reality of those purchases set in, instead of dwelling on it, move forward with a plan that can help you save money and still enjoy the beginning of the year.”
With the holidays over and the impending bank statements beginning to roll in, Better Business Bureau Serving Eastern Michigan offers tips to recover financially from seasonal overspending.
Develop a Plan — Before you begin paying off any bill, it is important to develop a plan for paying down debt as quickly as possible without dipping into emergency savings or borrowing money. There are plenty of great online resources that help monitor money and get your budget inline.
Put Your Credit Cards Away — In an effort to avoid creating more debt, put credit cards away and out of your wallet to avoid the temptation of using them. Some credit card companies allow their customers to freeze their card temporarily, which helps dissuade them from using the cards, as well.
Pay Extra Whenever You Can — When repaying debt and trying to regain financial stability, it is always best if you can pay more than what the monthly minimum of what you owe is. This will help get the debt down and help you pay it off quicker.
Stay Out of the Stores (Online and In-Person) — When facing a post-holiday debt situation, avoid going to the mall or shopping online. One of the easiest ways to help curb online shopping is to unsubscribe from email lists, which often advertise tempting sales and deals after the holiday season.
Return Anything You Didn’t Use/Unwanted Gifts — Take an inventory of the items you bought for the holidays that you didn’t end up using (paper plates, tree decorations, etc.), or if you received a gift that you can return without hurting anyone’s feelings, then go ahead and return the item. When you return an item you bought with your credit card, it’ll push down your balance some. When you return an unwanted gift, you’re gaining some much-needed cash you didn’t have on hand before, which you may need for paying your bills.