The holiday season comes but once a year, yet its monetary effects can be detrimental to your credit. For consumers surrounding Fort Worth, TX, it’s not uncommon to exceed a holiday budget. In a country surrounded by consumerism and the encouragement to buy, buy, buy—it can be difficult to curb spending. All of this generosity can leave you not only with a hole in your bank account, but also a huge balance on your credit card statement.
Make sure all the extra spending doesn’t linger over you throughout 2013; formulate a plan as quickly as possible.
Consider the following steps offered by Forth Worth bankruptcy lawyers to help resolve overspending.
First, stop your spending. Did you charge all of your holiday gifts? Put away those credit cards immediately! Some people go as far to throw them in their freezer, so that they are still available, but not accessible. If you feel like you may continue to use them, cut them up while there is a balance – after all, you can always request another one. Whatever you decide to do, don’t add to the balance of your card – work on resolving it, which starts with a spending freeze.
Second, it’s time to get calculating. Accept the credit card balances in front of you and be proactive. Document your balances and calculate—with the interest rate—what your payments will be. Figure out how much it would cost to pay everything off in 3 months, 6 months, or even 12 months. This might result in the extra motivation you need to resolve your debt quicker.
Third, break down your budget. After you figure out your monthly payments, it’s time to start making cuts to unnecessary spending. Consider other cost-effective measures, like taking a look at low interest credit cards that offer a zero balance transfer, as this can lower your payments.
Finally, start a plan for the next holiday season. As any Fort Worth bankruptcy lawyer will tell you, “don’t repeat your mistakes”. Plan ahead for the upcoming holiday season with a thorough budget and plan to avoid overspending and stick to this goal.
For more information on how to alleviate post-holiday debt and make wiser spending decisions in the future, contact a Fort Worth bankruptcy lawyer.