Debt got you down? Did you overspend at Christmas? Did your credit card bill come and now you are wondering how you are going to pay it off?
Don’t worry read below to learn 5 ways to pay down that debt fast.
New Years is over and life is starting to slow down and return to normal. Then boom. The 3rd Monday in January the credit card bills arrive. It is called Blue Monday. Don’t let the bills bring you down! You can get out of it quick if you follow these steps.
5 Ways to pay down Christmas Debt fast!
- Put Christmas cash towards the debt.
“But Amy, it was a gift, it should be used to buy me something pretty, I deserve it.” You do deserve pretty things, but you overspent at Christmas! Seriously take any extra cash you were given and put it down on the debt. It might not feel as good as a new shirt but when the credit card balance drops you will feel better.
- Sell or re-gift those items you won’t use. Chances are you got a gift you’ll never use. Save yourself some space! Sell it on a local site, Kijiji or Craig’s list then put that cash on to your credit cards. If it doesn’t sell re-gift it for a birthday! Use the cash you would have spent to make an extra payment on your credit card. People are afraid to let go of gifts as they are afraid to hurt feelings. Have you ever thought that maybe they actually don’t care? Maybe they re-gifted it to you! The only one that gets hurt is you(when you look at the credit card statement.) Sell the extra crap and make a payment!
- Pay the smallest debt first. Always pay the smallest debt with the highest interest first. It is tempting to look at the biggest debt and try to tackle it first, but that is a bad move. Think about it this way if you decided to run a marathon, you’ve never even run around the block, would you just start off with a 40km run? No you would start by training and doing a little bit more each day.
Repaying debt is the same thing, it can be a marathon so start small and work your way up!
- Cut the cards. You may not love this idea but, it will save you from adding to the debt! Cant handle cards, don t have them. I recommend you put them at home in the freezer, back of the toilet, underwear drawer or wherever they are out of sight out of mind. You`ll spend less and think more. That’s a good thing when spending.
- Budget. Despite saying it in every post I write so many people are still afraid of this word and don’t bother doing a budget! Question for you; if you don’t know where your money is going how do you know how much you have to save? Make a list of income coming in and expenses going out. Doing this will let you know exactly where you need to make changes.
Still feel overwhelmed by debt?
You don’t have to claim bankruptcy or see a credit counsellor. YOU CAN do it yourself, and you just might need a little help. I can help you to discover patterns and behaviors around money that you didn’t know you have. Together we will help you to overcome emotional hurdles and change your negative money beliefs. I will help you customize your own budget and most importantly I will keep you accountable.