We’ve finally reached the end of another holiday season, but you may be at the start of figuring out how to pay for all the gifts. While you may be feeling a large amount of regret, it’s important to acknowledge that you’re gone too far so that you can begin to address the problem. If you’re in this spot, look through the following tips to help you right the ship.
- Assess the Damage: Review your current financial situation and determine the extent of the overspending. Look at your bank statements and credit card bills to understand where the money went.
- Prioritize Debt Repayment: If you used credit cards for your Christmas purchases, prioritize paying off the debt using the debt snowball method. Use all available cash to pay down the debt with the lowest balance, then pay off the next lowest balance until all debts are paid off. If you need to stay motivated by paying off small balances, the debt snowball is for you.
- Create a Budget: Develop a realistic budget that includes all your necessary expenses such as bills, groceries, and other essentials. Allocate a portion of your income to repaying the overspent amount.
- Cut Non-Essential Spending: Look for ways to cut monthly expenses as much as possible. Temporarily reduce or eliminate discretionary spending on non-essential items until your debts are paid off. This might include dining out, entertainment, or other luxury expenses.
If your eyes were bigger than your wallet this season, it’s time to create a plan to get your finances back in order. Schedule a meeting with your Francis planner today to get started.
