Here’s a little fact to spoil your holiday cheer: According to Nerd Wallet, 52% of American went into debt for Christmas 2022 and of that group, just less than a third of them still have not paid off the balance!
Here are some ideas for getting out of this debtor’s prison:
- Make at least the minimum payments. No matter how tight things are, don’t skip a payment. Make at least the minimum payment or your credit score will be impaired.
- Pay off that balance! In my opinion, you should never carry a balance but should pay the balance in full every month, thereby avoiding interest charges. But I should have shared this advice by in October – for some, it’s too late!
- Start planning for Christmas 2024 now. Yes it’s early. Paying off Christmas 2023 is a good place to start. Then save in advance for 2024 to avoid being in the same mess January 2025!
- Set spending limits and stick to them. This may apply not only to gifts, but also to what you’re going to spend on yourself.
- Don’t neglect other obligations like student loans. Fail to keep up the payments and the balance will grow and your credit score will decline.
Christmas 2024 will be a lot merrier when you’re debt free – what a great present to give yourself.
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