Simple Solutions to Christmas Debt

With all its decorations and feasts, spending can get out of hand around Christmas time, especially if you forget to budget or have a large family. Christmas debt happens even more easily due to the fact thatChristmas pay-checks are paid earlier, meaning that you have to stretch the rest of your money until late January. Even the best budgeting can sometimes fail, and you can find yourself in mountains of debt come January with no simple solution. However, there are ways to ease the impact ofthis debt in the new year.

Set Up a Standing Order 

If you do find yourself with a large Christmas debt in January, the best way to pay this off is through a standing order as this will ensure that the total sum is paid off before the end of the month. Using a standing order also means that you can program your payment to come out of your bank account automatically on a certaindate, making sure that it comes out of your bank account in time and that you do not forget to pay it off when money gets tight later in the month. Thiscan ease the pressure of your debt and allows you tochange or cancel your payment at any time before it leaves your bank account. 

Pay Debts on Time

Paying debts on time is vital if you want to avoid serious consequences., such as lowering your credit rating. Your credit score is importantfor a hugerange of different financial services such as securing a mortgage and taking out a loan and can be seriouslyimpacted by late payments on debts, rent, andbills. Increase your scores by paying debts immediately and ensuring that your credit card balance is low, which will show that you are trustworthy to lenders. An additional bonus of paying your debts on time is the reduction in stress – paying your debts will mean that you can spend your money without fear and will lessen the amount of time worrying or being hassledby lending companies. 

Take Out a Debt Consolidation Loan

A debt consolidation loancould help you pay off yourdebts by increasing your control and management of them. Debt consolidation loans bring an end to multiple bills and collection phone calls as they allow you to pay off your debt in one single, manageable payment. This allows you to control your transactions and easily view how much money has come out of your account, as well as showing you how much you have left to pay overall. Thisalso lowers your interest rate, which allows you to repay your debt as soon as possible, leaving you free of debt for the rest of the year. 

Seek out Financial Advice 

If you struggle to manage your finances yourself, employing a financial advisor to help you could mean paying off your debts sooner whilealso stopping you from getting into debt again. Financial advisors offer advice tailored to you, helping you to organise your finances and debts while also planning for the future and your financial goals, including retirement. They can also offer advice on housing, mortgage, andyour savings account, ensuring that all your financial responsibilities are well-managed and understood. Using a financial advisor not only helps you to diminish your Christmas debtbut being taught how to organize your funds correctly is importantin staying out of debt and avoiding the same situation next year, keeping you debt free for life. 

Gain a Second Income

Many people choose to take on second jobs over the Christmas period to earn more money to spend on gifts and other costs such as décor and food. However, the same can be done in January too, helping you to pay off your debts and give you a head-start for the coming year. Whilecompanies tend to slow down their recruitment in January until the Spring, thereare many other ways that you can earn extra money. An excellent way to do this is to utilize the skills you already have, such as turning your hobby into a career. 

There are many different skills that can be turned into money-making schemes, from cake decorating classes to crafts to flower arranging. It is more than likely that everyone has one of these skills, and many of these ideas will also give you additional freedom and the option of working from home. 

Getting into debt over Christmas does not have to damage your finances for the rest of the year. With the right methods, you can pay off your debtin January and be able to afford luxuries in the months afterward.