Gifts are the love language of many—after all, they say a thousand words. But if you went overboard this holiday season, it’s time to rethink your next financial steps.
The word debt carries a lot of weight, and rightfully so. Debt can affect every part of a person’s life, from home ownership to marriage stability. But with intelligent planning and some expert guidance, you can pull yourself out of any financial hole.
To rebound from any holiday shopping sprees, let’s review a few tips for debt recovery:
The only way to get rid of debt? Pay it off.
We know, easier said than done. However, any financial situation can handle a structured payment plan. If dealing with a single debt, use a repayment calculator to build a personal payment schedule. Make sure your timeline is reasonable and achievable with your budget.
With multiple debts, reinforce your plan by consolidating under a credit counseling agency. This method gives all debts the same fixed interest rate, meaning you’ll save money over time. As a bonus, agencies will stop you from opening more high-risk credit accounts.
Think of a balance scale—if you spend a little extra, you have to earn a little extra.
Maybe you’re lucky enough to have a salary which will cover any holiday debt. For most, though, debt requires some hustle to resolve. To pick up cash, here are some supplemental income sources for debt:
After the indulgent holidays, it feels right to limit some luxuries. And with debt to pay, it’s also necessary.
It can be difficult turning down social events, dining out, and vacations. But paying off debt is the only way you’ll build financial stability for those activities. Fortunately, there are many tools for you to track and cut off excess spending:
Find the method that fits your lifestyle, and start cutting out those weekend getaways (at least for now).
When it comes to money management, expertise matters. You can play around with watercolors or yoga, but not with your finances.
If completely lost on your debt journey, consult a financial advisor. Quality consulting services, like Cetera, can provide everything from debt payment plans to wealth planning. With their robust financial advisor network, you’ll be receiving guidance from the best of the best.
Enter the New Year with a Debt-Free Plan
Debt can be an emotional topic, filled with fear and anxiety. But don’t panic—with these tips, you can form a solid plan to pull yourself out of any debt-hole. Put down the credit card, and pick up the spreadsheet for a debt-free new year.