Celebrating a holiday can refresh our minds; however, it can also result in huge debt to pay off the next month. If you want to kick-start your new year with proper budgeting, here are some tips to help you pay off those holiday debts.
1. The depth of your debt
It is important to have a concrete report of your debt before you start to pay off bills or start using an online tool to help you. First figure out your debt and your budget so you can determine what your financial situation is.
2. Choose an easier method
You may be tempted to try to pay off your debt all at once, but you will likely not stick to the plan because it’s not realistic. Instead, you can try to list your debt and pay off the smallest one. List all your debts that aren’t your mortgage starting from the smallest balance to the biggest one.
You should determine how much money you can put toward paying the debt off. When the particular debt is paid, roll on to the next minimum debt to pay off. This is the way you can try to avoid bulk debts.
3. Extra money is always welcome
Extra money is always a positive income that helps you in paying off your debt. You can do this by either having a side job or simply cutting back on expenses. Many individuals reported that they are able to get rid of their debt just because they know how to make preferences for their budget. For instance, a better cable rate, mobile device deals, car insurance and many more.
4. Auto payment works!
You can automate your payment and you will have nothing to worry about when it’s the due date. Many banks have a free service, so you can save on administration fees when paying off the debts. It is necessary to switch to these free services because every dollar counts when you’re paying off debts.
5. Don’t get behind on your debt!
Make a goal to get rid of your debt this year. Ask for help, consult with a financial planner, CPA, or look for deals on Quicken to find out the best tool for your household. Quicken can help reduce your debt with the built-in debt reduction tool that will tell you how much to pay on each loan and when it will be paid off. You can use a Quicken comparison chart to find out which version of Quicken you should be using. Paying off your debt takes careful consideration and planning. You will be so happy you put forth the effort!
