With the holidays approaching, now may be a time when you’re looking to buy gifts or to travel. Everything that you do over the holidays could end up being too much for your regular income, so like many people, you may turn to your credit cards.
Paying off that holiday debt can be tough, though. It’s much easier to spend a few thousand dollars than it is to repay it, so it’s easy to find yourself with post-holiday debt that feels overwhelming.
There are some good tips that may help you pay down what you owe.
- Pay as much as you can every month
To start with, one thing to do is to pay as much as you can toward the debt each month. For instance, if you have $5,000 in debt and a monthly payment of $35, try to pay more, $50, $100 or whatever you can afford, to pay down the debt faster and reduce the accumulating interest.
- Pay every week or bi-weekly
Another good tip for paying down debt is to make multiple payments each month. You might have a payment of $35 that is due monthly, for example, but if you pay $35 weekly or biweekly, you’ll be saving a lot of time on the repayment of that debt. Even a small extra amount sent toward the payment will add up over time.
- Get in touch with the lender if you can’t pay
Finally, get in touch with the lender if you are having trouble paying what you owe. While it might seem like this would be the worst thing to do, the reality is that lenders want to help people get back on track with their payments. They may be willing to reduce fees or penalties, forgive a missed payment or help you with other repayment options.
If these tips won’t help you get out of debt because of a lost job or other circumstances, remember that there are other options, too. Even bankruptcy could be useful for someone who has found themselves in overwhelming debt, so don’t be afraid to look into all of your legal options.