How to Recover From Financial Strain of the Holidays

Getting caught up in holiday excitement may lead to overspending and regret after the enthusiasm has worn off and the bills start to roll in. To recover from the financial strain of the holidays, take a hard look at your budget and determine where you can squeeze the extra cash to pay for overzealous spending. Allowing the debt to grow and making inadequate payments may hurt your credit rating.

Instructions

1

Reassess your budget immediately following the holidays. The credit-card and store bills will hit your mailbox by the middle to end of January; formulating your repayment strategy prepares you to eliminate the debt as quickly as possible.

2

Obtain your balance due before the bills arrive. Look at your account online or call the credit-card companies to obtain this information. Pay more toward the balance, if you are able to do so; otherwise, pay the minimum due to prevent a fee from being added to your balance. Keep track of the credit-card balances so you know how much you need to save.

3

Research credit-card companies that offer zero-percent financing for three to six months or longer when you transfer balances. These companies allow you to place your debt onto the credit card with no interest payments for the specified length of time. This option grants you time to build savings to pay off the debt.

4

Incur no new debt in the months following the holidays. Avoid using your credit cards and curb your spending, especially in nonessential activities such as eating out, going to the movies or attending expensive sporting events. Cut your cable bill to only the basics or use an antenna; remove long-distance service from your landline or dispose of the landline altogether. Reduce heating bills and electricity by lowering the thermostat, turning off lights or using lower-wattage bulbs.

5

Get a part-time job for a few months. If you work full time, seek a part-time job where you work on the weekend or on a few nights during the week. Put all the money you receive from part-time jobs toward your holiday debt.