Credit
January 2, 2016

How to Overcome the After-Holiday Debt Blues

Simple. Thrifty. Living.

Now that the holidays are over, you may find yourself drowning in debt. If that is the case, don’t panic, there are ways to easily pay down your debt without making it worse. The key is to focus on your finances and make sure you are making the right decisions when it comes to paying off your debt. Here are four tips to help you get on track:

The first thing you should do is organize your debt. Attention should be given to credit cards with the highest interest first, so you don’t keep racking up interest on your debt. Then, pay off the credit cards with lower interest rates. Here is a good list of credit cards with low interest rates. You should also try signing up for a site like Personal Capital. They monitor your accounts to see what you are spending money on, and can help you determine what you can cut.

Paying off your debt with the highest interest rate is of course your first priority, but you should also avoid paying any extras when it comes to your debt. Don’t miss any payments, so you don’t get hit with any late fees. If you are over your credit limit on any  of your credit cards, pay that debt off first, to avoid any over limit fees. Basically, figure out which debts may be racking up extra fees and take care of those to make sure you are not adding to your debt.

Signing up for a balance transfer credit card is a smart move to avoid paying extra interest on holiday debt. If you spent a lot during the holidays on a credit card that has a high interest rate, you can apply for a balance transfer credit card that offers a 0% intro APR, so you can stop paying any interest on the debt. Pick a card that has a long intro time period (such as 12 months), so you have time to pay off the debt. Here is a good list of credit cards that have 0% intro APR offers.

Since you got all of those fancy new presents for Christmas, now might be a good time to sell off some of your stuff that you don’t need anymore. The best thing to start selling is old electronics. Did you get a new phone for Christmas? A new iPad? You can sell off many of your old electronics for a really good price at websites like uSell. You can also use a site like eBay to sell your unwanted electronics, clothes or anything else you want to get ride of.

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