It may seem counterintuitive to focus on reducing debt during a season associated with spending, but this is an excellent time to get started! Here are some tips for anyone struggling with high-interest debt:
- Reframe Your Thinking: Remember that the holidays are about joy, not just material gifts. To minimize spending, focus on experiences, spend quality time with loved ones, and share homemade gifts.
- Budget for Holiday Expenses: Include debt repayment as a line item in your holiday budget. Even small additional payments can significantly impact your overall debt.
- Maximize Holiday Income: Consider using any bonuses, extra cash gifts, or earnings from side hustles to make a lump-sum payment towards your debt.
- Cut Back Where You Can: Reduce non-essential holiday spending. For example, skip extravagant decorations this year or choose a potluck instead of hosting a large feast.
- Give Experiences, Not Just Things: Instead of physical gifts, consider giving experiences (like concert tickets, classes, or day trips). These can cost less and create lasting memories.
- Start Small and Stay Consistent: Avoid trying to pay off all your debt at once. Begin by setting small, achievable goals and then building on the momentum of successfully reaching those goals.
- Seek Support: Consult with a financial advisor or debt specialist for tailored guidance and support.
- Lower Your Monthly Payments: Check if you qualify for a debt relief program that can reduce your monthly payments and free up space in your budget.
If you’re interested in exploring debt relief options, speak with an ACCS debt specialist to see if you qualify. Find out how much you can save each month!
Disclaimer: This story is auto-aggregated by a computer program and has not been created or edited by wisewalletwizard.
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