4 Steps for Happy Holidays While Managing Debt
Nov 20, 2024
As you look ahead to the holiday season, you may also be worrying about your debt and how that impacts your budget. You wouldn’t be the only one – the holidays are a time of high spending for a lot of people! That’s why we’ve compiled some handy tips to get your ducks in a row before the shopping begins.
Step 1: Know What You Owe
It’s important to be organized! And the first step to getting organized is to actually find all your debts.
The best place to start is by requesting your free credit reports. All three credit bureaus (Experian, Equifax and TransUnion) may have slightly different information, so it’s important to check all of them. They’ll list your credit card and loan debt, collection debt and any applications for loans you’ve submitted.
Next, check your mail and email inbox. Creditors send monthly statements, and if you’re behind on a payment, they may send additional letters or emails. Even if it’s stressful, do not ignore letters from creditors and debt collectors.
Finally, to make sure nothing has fallen between the cracks, you can check your financial account statements. This is also your chance to review automatic payments and cancel any subscriptions you no longer use!
Step 2: Make a Plan and Adjust as Needed
Take the time to prioritize your debts and bills, and factor your payment plans into your budget. Then, start mapping out your holiday spending! The two major expenses to consider are special holiday meals (and treats!) and gifts. Start by compiling any recipes and wish lists and doing some price estimates.
We recommend spacing out your shopping so you’re not paying for everything at once – if you can buy some gifts or less-perishable food ingredients ahead of time, do so. Plus, if you’ve already made your lists, you can easily take advantage of any special sales!
If you’re juggling debt, it’s important to resist adding to it. If more debt is unavoidable, however, you can take a look at low-rate loans and credit cards, like our Anything Loan. You may even be able to take this opportunity to consolidate higher-rate debt!
Step 3: Start Seasonal Projects Now!
An easy way to save money during the holidays to help avoid more debt is to DIY. If you want to make your own decorations or give handmade gifts to the people on your list, you’ll need as much time as you can get.
Need some ideas? Check out last year’s blog for some tips for celebrating in a sustainable way!
Step 4: Ask for Help (If Needed)
The holidays are already a crazy time of year, and managing debt on top of that can be a lot for one person.
There is no shame in asking for help when you need it. Teaming up with a friend or loved one for shopping, cooking or decorating can help ease the pressure of the holidays. And if you need financial assistance, come to Honda FCU. We’re happy to talk you through your options and help you come up with a plan.
Sources:
www.debt.org/advice/how-to-find-all-your-debt
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