Time to Work off that Holiday Debt
Has all the Holiday feasting, Christmas gifting and Boxing Day indulgence taken it’s toll? Like your expanded waistline, your debt may also be in need of a little trimming.
Well, bring on the New Year! It’s a time for fresh starts and new goals. Just like a healthy diet and exercise can reduce your waistline, these simple steps can reduce your debt.
Find out how much you owe
Open those bills! You won’t get anywhere ignoring your statements and hoping the debt will go away. Be your own personal trainer and make a plan. Find out how much you owe, what the interest rate is and when the balance is due. A missed payment will cost more with late fees and interest
Pay off the debt that has the highest interest rates
Your boot camp drill sergeant may want you to target your thighs. Debt should also have target areas – eliminate the debt with the highest interest rates first. Credit cards can carry interest rates of 20%, which means carrying a balance is extremely expensive. Pay more than the minimum payment.
Depending on how much debt you have, it may be beneficial to consolidate it with a loan that offers lower interest rates.
Make a lifestyle change
You’ve heard it before – fad diets don’t work. By creating a budget and sticking to it, you can get rid of the debt and keep it off.
Credit counselling services and advisors are available to help you stay on track.
December is a wonderful time of year, don’t punish yourself for being generous with your thoughtful gifts and holiday merrymaking. Take care of yourself first.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.