The holidays are a time for joyous moments and gift-giving with loved ones, but 2020 is not like any other year.
There are many reasons why people have fallen into debt or further into debt. Government shutdowns and enforced restrictions against numerous industries has changed our society, our economy, and have left millions struggling.
If you are experiencing this, know that we understand. We help people just like you!
Nobody wants their holiday spirit ruined, not even in 2020. Most of us won’t avoid it if possible, but gift-giving can create additional financial strain on your credit cards. So how do we recover financially when we hit 2021? We’ve put together a few tips.
Cut Unnecessary Expenses
Cutting expenses is a good way to start paying off credit card debt after the holidays. You can pay off debt sooner by cutting back on non-essential spending and putting what you’ve saved towards what you owe.
We suggest looking back at past credit statements and identifying unnecessary costs you can eliminate moving forward. That Taco Tuesday of carne asada and margaritas was fun, but it was another $50 item on your bill. That swimsuit you bought heading into winter was a great bargain, but you likely won’t be wearing that for many months.
It can be jaw-dropping to learn how much you have spent, but reassuring to know how much you can potentially save. You can also cut back expenses by setting a limit on spending with a budget.
Related Article: How to Pay Off Debt on a Budget
Pay More Than the Minimum
Minimum payments are the smallest amount you can pay on your credit card to help your account stay in good standing. After a holiday spree, paying the minimum is the most manageable option, however, it can become overwhelming in the long-term. You still need to pay back what you owe and even if you pay the minimum due, you’ll still be charged interest for the remaining balance. Repayment is a large component of what makes up your credit score, so ensure that you make more than the minimum payments to help you maintain your financial health and avoid falling deeper into debt.
Stop Using Your Credit Card
If you went overboard on holiday cheer and can’t pay off what you owe, the best thing to do is to stop using your credit card. It may be tempting to continue using credit to pay bills or fill in the gaps to make ends meet after the holidays, but you risk getting into more debt.
Do you practice “Dry January?” A lot of people give their bodies and health a little boost by avoiding alcohol for the first month of the new year. It may sound silly, but take that same approach with your credit card.
Get a Debt Consolidation Loan
We recommend a personal loan for debt consolidation to help you pay off credit card debt after the holidays. Not only does a debt consolidation loan combine your debt into one monthly payment, but it also makes getting out of debt simpler. With lower fixed interest rates than a credit line, you can make repayments manageable and improve your credit score at the same time!
If you have questions about debt consolidation loans, speak to our team of knowledgeable professionals. Our compassionate loan matchmakers will find the best terms tailored to your unique situation with fast approval and rates starting as low as 3.84% for amounts up to $100,000.
Get started today on our website. Prefer to talk in person? Call us at 833-453-6324 and we’ll get you connected immediately with one of our loan experts.