If holiday bills are ruining your days more than the miserable weather, try our Three Month Holiday Debt Elimination Plan.
Those pesky bills should have started arriving by now. If you overspent, opening them is definitely not pleasant, but if you have a debt reduction plan in place you will view paying those bills as a challenge. Accept it and enjoy!
This is when you want to formulate your plan. First, you have to know how much you owe. All that requires is to look at those bills and write down the total amount that you owe. An excel spreadsheet will work but so will a piece of paper and a pen.
Now that you know what you owe:
- Decide which account you will “attack” first. Choose the smallest or the one with the highest interest rate. It really does not matter. Choose the one that will give you the most satisfaction.
- Develop a really tight budget. This is not one that you have to live on indefinitely, just until the holiday bills are paid off.
- Put your credit cards away. There is no need to add to your financial burden.
- Return duplicate or unwanted gifts. You may not receive top dollar if you do not have a receipt but something is better than having an unused item just lying around until you get tired of looking at it and throw it away.
- You can sell anything today and that includes those unwanted gift cards. Do you know that most gift cards, even if you think you want them, languish in desk and dresser drawers unused? Go online, find a reputable business that allows you to sell to the business itself, not individuals. You will usually get 70 to 75% of the card’s value.
And if all that does not work; one of our financial coaches can help you create a long-range plan. Remember, a well-thought-out financial plan is a gift you give yourself!
Click each month for more details on the month-by-month plan: February and March