Resolvly’s 4 Ways to Pay Off Holiday Debt
It happened again. You bought more presents than you planned. And if you don’t have your holiday debt under control, you’re probably under a lot of stress right now.
You’re certainly not alone. Most people go over their holiday spending budgets despite earnest efforts and good intentions. Don’t fret! Here are some tips from debt resolution experts, Resolvly, to help you enjoy the rest of your year worry-free.
- Limit Spending to What You Can Afford with Cash
We’ve all been there. It’s not easy to turn down great presents, especially when you love the people you’re buying them for, and you want to get them something memorable.
But one of the best ways to avoid the holiday debt cycle is to reduce holiday debt from the beginning. By focusing on your budget and saving up for gifts throughout the year, you can buy everything you need in December without having to take out a loan or choosing between buying presents and paying bills.
- Try the Snowball Method or the Avalanche Method
One of the best ways to start paying down debt is to make it exciting. After all, paying down debt doesn’t sound fun, but financial freedom is something we all aspire to have.
Focus on your goal and start with what we call the Snowball Method:
- List out your debts
- Rank them in order from highest to lowest balance
- Pay your minimum payments on cards with the highest balance
- Pay as much as you can on cards with lower balances
The key to the Snowball Method is momentum. Once you pay down a card with a lower balance, you’re likely to feel more motivated when you start paying down the next.
The Avalanche Method works like the Snowball Method in reverse. Gain momentum by paying down your biggest balance first, and the rest of your cards won’t feel as daunting.
Plus, you’ll have more money in your pocket after you pay off one card to put toward your other lines of credit each month, as you eliminate monthly minimums.
- Use Your Tax Refund
Are you expecting a big check from Uncle Sam this spring? Your tax return can be your best friend when you’re paying off holiday debt.
Consider using the money from your tax return to pay off your cards quickly. If you’re fortunate enough to get a sizable refund, you can make a meaningful dent in the amount you owe.
- Seek Debt Resolution
Living with debt can have a significant impact on our quality of life. If your circumstances have changed since the holidays and you’re having difficulty paying off your credit lines, working with a debt resolution agency may be the right step for you.
Bonus Tip: Call Resolvly LLC
Resolvly LLC provides unsecured debt assistance. We have vast experience and expertise in the field and assist with all types of unsecured debt, including credit cards, medical bills, private student loans, business debt, and vehicle repossessions. We strive to help clients find the best possible solution for their situation.
At Resolvly, we know how overwhelming it can be when you’re struggling with holiday debt. Let us help you find a way out. We’ll provide expert advice and give you a personal touch every step of the way.
Reach out to us via our contact page, and one of our friendly team members will get back to you to learn more about how we can help you achieve financial freedom with a free consultation.