How To Deal With Past Holiday Debt & Avoid Future Holiday Debt
The holidays can be a great time to meet with family, exchange gifts, and unintentionally rack up holiday debt. With the average American spending just shy of $1,000 on holiday shopping this winter, it’s all too easy to end up with debt from both the past and present.
If you’re tired of the payments and want to deal with past holiday debt while avoiding the same mistake this year, this guide is for you. We’ll cover how to:
- Get your spending under control
- Pay off your debt
- Avoid new holiday debt
- Pay off any financial emergencies
- And more…
Dealing With Holiday Debt Past And Present
Dealing with holiday debt may seem all too familiar. The endless bills that pile up from year to year, spending money on the present holiday while still paying off the past holiday can seem like a vicious cycle. Learning how to break the cycle is the only way to become debt-free. Let’s find out how.
1. Get Your Spending Under Control
You’ve dug yourself into this mess and before you get out, you’re going to have to abandon your shovel for a moment. This means getting your spending under control first by figuring out how much you’re spending, where you're spending, and why you’re spending.
This is a tedious process that involves looking through your statements and receipts to write down every penny you throw away, but only after this can you figure out what spending you need to cut ASAP.
2. Figure Out How Much You Owe
Now that you’ve cut your current spending, it’s time to see how much you owe. Write down the total amounts, minimum payments, and interest rates on all of your holiday debt.
3. Tackle High-Interest Payments First
Some people prefer the “snowball method” of tackling debt, which is paying off smaller debts first. Instead, we suggest tackling the debts with the highest interest rates first, because it doesn’t make much sense to pay off something small just to have the same amount accumulated on a high-interest debt you have waiting on the sidelines.
4. Consider Consolidation
If you have multiple high-interest debts – such as a few credit cards with high balances – consider consolidation. This is when you roll multiple debts together into one monthly payment, usually at a lower interest rate. This could save you hundreds or even thousands of dollars in interest over the year.
5. Create A Budget – For Real This Time
We’ve all been guilty of thinking we have a budget, but few of us have a detailed copy written out on paper or electronically. Budgets should be updated at least monthly and include all income and expenses, even discretionary small spending and the extra money grandma gave you for your birthday.
Use a budget app or notebook and pen to keep track of your expenses, including how much you want to pay towards your previous debt every month and when you plan to pay it off.
6. Have Fun At Home
The holidays bring a lot of temptation to head out for a holiday dinner, do some shopping, and, basically, spend money. It may be a challenge but try to reign in your outings and spend more time at home. Combine this with cooking instead of eating out or ordering in and you’ve got yourself a proven way to save money.
7. Focus On The New Year
When you feel down about your limited expenses, remember your why. You want to start the new year off with as little debt as possible so you have more financial opportunities in 2023. Write out your financial goals for the new year and let this motivate you to stay on track financially during the holidays.
8. Face Financial Emergencies With Confidence
If your water heater breaks, your car starts making a funny noise, or you receive some unexpected news, you may need even more cash this December. If you have an emergency fund, this is the time to use it. For those who are still building theirs up, you may consider a title loan as a short-term solution.
Using A Title Loan For Emergencies
For those who find themselves without resources, an online title loan from Mississippi Title Loans, Inc. could put between $300 and $2,500 in your account within 24 hours. This money could be used to pay off an emergency, allowing you to stick to your budget and debt repayment as planned.
Mississippi Title Loans, Inc. welcomes all credit to apply, and they allow you to keep your car during the loan.
To apply, you’ll need to be 18 years or older with a valid Mississippi I.D. You’ll also need to own your vehicle outright and have the lien-free title as proof.
To apply or learn more, fill out the online form on the Mississippi Title Loans, Inc. homepage. A trusted representative in your area will contact you and answer any questions you may have.
If you continue with the title loan process, the same rep will meet you in person to complete the paperwork, which takes less than half an hour.
Once approved, you can get your cash as soon as that same evening.
Deal With Your Debt Today!
Dealing with holiday debt is a hassle, but getting surprised by a new expense on top of that could be very disheartening. Instead of charging your credit card or scouring for extra cash, consider an online title loan from Mississippi Title Loans, Inc. to face your financial emergency this holiday.
If you own your vehicle outright, you could qualify for up to $2,500. We want you to get out from under your debt and bring in the new year with confidence. Complete our inquiry form today to learn more.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.