Don’t Let Christmas Credit Card Debt Rule Your Life

It may be only the end of January, but if you feel as if the time is just flying by and, like last year, Christmas will sneak up on you again, then it’s time to get organised.

No doubt your credit card statement is a daily reminder of how much you did and brought, and if so, you aren’t alone.

Managing finances is hard work, living costs, food, petrol, bills, entertainment, and around Christmas our hard earned money seems to just vanish.

However, below are some suggestions to ease your current Christmas Credit Card Debt and be totally organised for Christmas 2011 in advance.

POST CHRISTMAS DEBT

• Tighten your budget and really bring your spending on everything back to the basics.
• Pay as much as you can off your credit card, even paying a small amount each week will help because then there won’t be so much to pay to meet the monthly repayment minimum.
• Address the high interest cards first and pay more than the monthly minimum when you can.
• If you have several cards, concentrate on paying one card down (the highest interest rate one) and then close it, or at least get the credit limit reduced.
• Return any presents that you don’t like or need and put the cash on your credit card.
• Be wary of adding credit debt to your mortgage and only do this as a last resort because it means you are paying interest on that money (admittedly usually at a much lower rate) for 25 years or more.

PLAN FOR CHRISTMAS 2011-01-23

• Start tightening the family budget now.
• Go without luxuries now and put the money aside for Christmas.
• Have a family meeting and decide how to buy for Christmas, maybe one present each instead of a lot of little ones.
• Start buying extra bottled and tinned food items and put them away from the kitchen so they don’t get used until Christmas. Buy frozen foods if you have somewhere to keep it.
• Lay-by your presents and pay a little off each week and check the stores lay-by policies.
• Plan Christmas meals so that they are cost effective.
• Open up a savings account, without a card, and get an automatic weekly withdrawal from your everyday account. Even $15 a week will add up to $750 over 50 weeks.
• Buy presents throughout the year when items are on sale. Presents like linen, kitchenware, etc, are not affected by fashion so never go out of style.