As per my promise here I have come up with some useful tips regarding saving and managing money for the coming Holiday Season and also how to pay off the holiday debts. So people who have already spent a lot over their earnings can have an eye on the tips below:
1. Instead of using the credit cards try to use cash as much as possible or whenever possible for all kind of purchases. For example clothes, foods, monthly payments like mortgage, home rent etc. This will keep the outstanding on your credit cards to a minimum level till you are paying off the holiday debts.
2. Make a chart of your outstanding debts. Put all the credit cards, outstanding on each of them and rate of interests in different columns. This will give you a clear idea about how do you owe on each card. So that you can make your planning regarding paying off the debts.
3. Try and build up a plan to pay of the holiday debts. Here first you need to make sure that how much you can afford towards paying off your holiday debts. Besides always try to seek different ways to cut off your regular expenses which will allow you to contribute some extra money towards paying off the holiday debts. You can restrict having food outside quite often, making phone calls that costs you a lot etc. Also a part time job can fetch you some extra money which might help you to reduce your holiday debts.
4. Always try to maintain or go with the payment plan you have made. Your primary target should be paying off the credit cards which has high rate of interest. Also if you see any possibility to transfer some of your other bills to your card accounts with low rate of interest then always go for it.
5. At last make a plan regarding saving for the next holiday season. A good and proper saving plan for the holiday season can really keep you away from falling into debts. This is what most of the people lack during the holiday time – “PLANNING” and due to that people always spent more than they earn and get caught up by debts easily. So when you know that holiday season is the time you are going to spent maximum, start saving for that purpose. Just go for a holiday account for next year holidays. Calculate last years total holiday expenses, so that you can easily understand how much you will need to save and how much you will need for the next year holidays and start saving accordingly.
Apart from contributing a particular amount towards the holiday account, try to save from your regular expenses as much as possible. Restrict unusual expenditures, so that you can save more.
As you all have understood well that due improper planning during the Holiday Season we often overspent and fall into debts. So guys who are currently facing this kind of situation and guys who want to avoid this kind of scenario in future follow the above mentioned tips. It will help you to keep the burden of debt away from your shoulder.