Debt-Free Holidays: Steps to Slash Your Credit Card Burden Before Shopping Sprees
By April Fowell
Thanksgiving and the 2023 holiday season are almost approaching. The holidays may be joyful, loving, and fun, but they can also be a costly time of year.
Furthermore, they will probably be significantly more expensive for people who already have credit card debt with high interest rates. Before the holidays, when money is most required, many people find themselves in a financial rut due to the present credit card interest rates, which are often about 20 percent.
(Photo : by SAM YEH/AFP via Getty Images)
Before the holidays, when money is most required, many people find themselves in a financial rut due to the present credit card interest rates, which are often about 20 percent.
Thankfully, there are a number of dependable and secure methods available for debt reduction that allow debtors to stand back up. Although it won't happen right away, you can start the process now and have one less thing to worry about before the holidays.
Debt Relief Service
Companies that help people with debt may be of great assistance to customers all year long, but right now especially. Their main means of assistance are two distinct approaches. For starters, they deal directly with your creditors to get a settlement amount that works for everyone. That amount ought to be less than what you would have been responsible for in the absence of the debt reduction service provider.
However, they can also assist by combining all of your debt into a single, easier-to-manage loan. When you combine all of your debt, you'll just have to make one monthly payment at the same time rather than several with separate deadlines. Additionally, you may typically combine it into a loan that has a cheaper interest rate than what you are already paying on your various credit card obligations.
Get a Side Gig
Even while taking on a second job might always help you make ends meet and pay off debt, it might not always be feasible, especially during the hectic Christmas season. However, there are jobs available that demand very little of you.
You may currently explore a wide range of passive income opportunities, such as renting out sections of your house, selling unwanted stuff online, pet sitting, and conducting paid internet surveys. Even while none of these options will make you wealthy, every extra dollar counts, especially if you can use it to reduce your debt.
Analyze Your Budget
Even if we all believe that we're trying our hardest to reduce our debt and save money, there probably is space for improvement. Thus, really reassess your spending plan. Seek opportunities to buy more for less money (large warehouse shopping, for example). However, also consider what you might live without if it meant having more money to pay off debt later on.
While frequent dining out and a morning coffee may not seem like much, they pile up over the course of the day and the week. Examine if you really need those things, or whether you could wait until after the holidays to spend the extra money you'll have to pay off debt. The amount of additional money you have to use can surprise you.
Prioritize High-Interest Debt
Identify the credit cards with the highest interest rates and focus on paying them off first. Allocating extra payments to high-interest cards can save you money in the long run and expedite the overall debt reduction process.
Negotiate with Creditors
Reach out to your credit card companies and negotiate for lower interest rates or more favorable repayment terms. Some creditors may be willing to work with you, especially if you've been a responsible borrower in the past.
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