How to Recover from Holiday Debt

Woman reviewing receiptsYou were Santa’s right-hand this past holiday season, but now you are paying more than you anticipated for your giving spirit.

What happened:
You were a rock star and didn’t forget a single person on your holiday list. Not only did you find a fancy cast iron pan set for nana and a football jersey of your brother’s favorite player, but you gave generous gifts to your child’s school teacher, soccer coach, and the paper boy. You even bought extra gifts as a backup just in case you did forget someone.

However, your generosity during the holidays can sometimes result in unintended consequences in the form of debt. With one late or missed payment, you may be paying late fees and interest charges that may have a negative impact on your credit score.

The Plan:
There is an option that can help you manage your holiday bills efficiently: consolidating your high-interest bills into a personal loan. Personal loans typically have low interest rates so by combining your high-interest holiday debt into one personal loan with a low interest rate, you can reduce your interest costs and save more in the long run. Plus, a personal loan will allow for just one low monthly payment to keep track of instead of several bills with high-interest rates, making managing your debt much simpler.

Now, Stick to the Plan:
You found a personal loan that really fits your needs and now have a lower, single monthly payment to manage. To help pay down your loan faster, consider using the extra money you're saving from the lower interest rate toward paying down the principal. Be wary of taking on new debt and making unnecessary purchases. Staying focused on lowering your debt will help you see results quicker and save on interest of outstanding debt.

Execute a plan to consolidate your high-interest bills into one low-interest loan while remaining mindful of your spending habits this post-holiday season and feel comfortable in declaring a successful holiday mission.

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