There is a smarter way to approach pay off holiday debt, and it starts with knowing a few key details. This guide covers them, along with tips you can apply immediately.
Key Takeaways
- Eat for less than $6 a day The average American spent $7,023 on food in 2015, according to data from the U.S.
- Worth noting: that works out to about $585 a month or about $19 a day.
- Provide up your vices”¦ It’s that time of year, after all , and, boy, vices can be pricey.
- Take smoking, for instance, which can cost a person thousands of dollars each year.
A Closer Look at Pay Off Holiday Debt
Now that the holiday lights are fading and the joy of gift-giving has dimmed, there’s a solid chance you’re facing a December credit card balance you just can’t quite pay off in full. The National Retail Federation predicted back in November that Americans would spend an average of $935.58 during the 2016 holiday shopping season. In fact, you may be able to pay all those purchases off by the end of your next billing cycle. Here are six methods that (taken separately or together, depending just how large your credit card balances are) can assist you pay your holiday debt off in 30 days. : 49 methods to get your debt paid off quicker 1.
Bureau of Labor Statistics. Get that dollar amount down to $6 a day , which, yes, can be done (you can go here to see how) , and you’re looking at an added $405 to put toward your debt at the end of the month.
What to Know About Pay Off Holiday Debt
Go bigger balances to cover? Challenge yourself to cut that $6 in half, a tall order, we admit, but still potentially doable ”¦ so long as you’re willing to eat plenty of vegetables.
More importantly, pay with rewards If you’ve been doing your spending all year on a rewards credit card, check your coffers , there may be points or cash back you can tap to pay down your balance. Sure, those rewards may seem better spent on a large vacation down the line, but if not cashing them in means carrying a balance into next month, you’ll genuinely just be losing those rewards to interest anyway.
How Pay Off Holiday Debt Really Works
Remember that per data crunches by QuittersCircle.com, a website powered by Pfizer and the American Lung Association, someone who smokes one pack of cigarettes a day (at an average cost of $5.71 per pack) could save $2,084.15 a year by quitting. That means kicking the habit will free up $171 each month that can be put toward your credit card balances. : 10 pointers to become debt-free as fast as possible—¹ 4. ”¦ or your guilty pleasures We get it: Quitting a bad habit is easier said than done.
And, even if you’ll ultimately achieve your goal, it could take some time for a new behavior to stick. But there’s probably a few line items in your budget that you can simply forego for a month (or two).
Getting the Most From Pay Off Holiday Debt
As a rule, cancel weekly pizza night, for instance. Table that mani-pedi. Put date night on hold or turn off one-click ordering on your Savvy TV to keep the movie rentals or video game purchases to a minimum for a while.
Remember, credit card interest can begin to add up fast, so sacrificing a few wants (while still addressing your payment requires) can prove worthwhile in the end. Sell some stuff If you can’t find methods to cut large dollars from your budget, look into angles that’ll bring in more income.
Tips That Make a Difference
In short, there are plenty of apps out there that assist you sell your gently used goods to online shoppers in search of a deal. And, whether you just got some new designer duds to replace the olds ones in your closet or an ill-fitting sweater from your Uncle Bob (who at no point provides a gift receipt), we’d venture to guess you’ve got an item or two on hand worth selling post-December. : 39 methods to sell your old stuff for the most cash 6.
Get a side gig There are certainly plenty to come by these days. Share your ride, run some errands, pick up a freelance writing gig (or two).
Common Mistakes to Avoid
Worth noting: sure, it means working an added night or weekend this month, but it’ll assist get that credit card debt off the books. Of course, if you genuinely went overboard this holiday shopping season or you had some large credit card balances before charging all those gifts, you may require a long-term strategy to get your debt under control.
You can apply this credit card payoff calculator to draft a customized payment plan. More from Credit.com How to Pay Off Credit Card Debt What Is a Solid Credit Score?
Is Pay Off Holiday Debt Worth It?
More importantly, this article originally appeared on Credit.com. How to dispute mistakes on your credit report.
Frequently Asked Questions
How can I save money on pay off holiday debt?
Compare prices across a few retailers, look for active coupon codes, and time bigger buys around sales events. In fact, you may be able to pay all those purchases off by the end of your next billing cycle. Here are six methods that (taken separately or together, depending just how large your credit card balances are) can assist y....
Is it worth shopping around for pay off holiday debt?
Usually yes. Bureau of Labor Statistics.
What should I check before buying?
Read the terms, confirm any code still works, and factor in shipping or returns. Get that dollar amount down to $6 a day , which, yes, can be done (you can go here to see how) , and you’re looking at an added $405 to put toward your debt at the end of the month.
Smart Ways to Save More on Pay Off Holiday Debt
- Compare the final price including shipping, not just the headline number.
- Check for student, military, or first order offers you may qualify for.
- Time non urgent purchases around major sale events for the deepest cuts.
- Leave items in your cart for a day; some stores send a follow up discount.
- Pair cashback with a coupon so you save twice on the same order.
Final Thoughts
Put these ideas to work and pay off holiday debt gets a lot less expensive. Bookmark this page, check back for fresh deals, and let the savings do the talking.
Originally published at clark.com.
