The holidays can bring plenty of cheer, but along with them can arise fear that mounting debt may be too large to handle after the gifts are unwrapped and the decorations stored away for the next season. If you fall too deep into debt, you’ll likely feel hopeless. Millions of Americans are in this difficult financial situation.
CondolidatedCredit.org reported that in 2019, Americans spent $34 million in the weekend before Christmas alone. Badcredit.org, citing a 2019 holiday spending survey from Decluttr, reported that 43% of Americans say they’re likely to spend over budget during the holidays. If the bulk of that overspending is going on a credit card, you’re going to want to have a plan to pay it off once the holidays are done. A debt management program might be your best option to help you pay back what you owe and avoid debt pileup.
No one likes starting off a new year owing massive amounts of money, so take the time to organize your credit card debt so you have a good idea of what you’re dealing with. Once you do, consider speaking with a licensed credit counseling professional and go over your debt repayment options with them.
Credit counseling organizations work with people to help those struggling with unsecured loans to find a debt management plan that works. Experts advise that people with credit card debt of $5,000 or more should seriously consider a debt management program. After reviewing your situation, credit counselors will negotiate with creditors to consolidate debt into an affordable monthly payment, often with lower interest rates, that is customized to your specific financial situation.
The benefits of a debt management program not only allow you to pay on your debt quickly and affordably, but also works to improve your credit score and avoid financial pitfalls. Don’t let holiday spending ruin your new year, get help with your debts and become the master of your finances.
In the coming year, experts advise putting money aside throughout the month. Creating a holiday fund can help you navigate the next season with holiday cheer—and without fear of incurring more debt.