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You’re suffering from what can only be called a holiday spending hangover. You got caught up in the frenzy of the season and spent much more than you intended to on presents, decorations, food, event tickets, and all of the other holiday trappings you could get your hands on.
It all felt wonderful at the moment, but now that you’re contending with a massive credit card bill and a drained savings account, you don’t feel the same. You might be feeling terribly guilty or frustrated with yourself now that you’re facing the consequences of your shopping sprees.
There’s no need to be hard on yourself. This problem is fairly common. Lots of people get overexcited by the holidays and spend more than they should.
Plus, punishing yourself won’t change your financial standing — making a recovery plan will.
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Why Is It Important to Recover from Holiday Debts?
One of the biggest reasons why you should try to recover from your holiday debts as soon as possible is that you’re leaving yourself in a financially precarious position. You’re not going to be able to pay for any surprise expenses, like emergency car repairs or dentist appointments, at a moment’s notice because your credit card balance is very high, and you don’t have a lot of savings sitting in your account. This is a very stressful situation to be in.
If you encounter an emergency expense and you don’t have the funds to cover it, you still have two options available to you. You could ask a friend for an IOU, hoping that they also aren’t suffering from a terrible holiday spending hangover.
Or you could apply for a personal loan. There are plenty of online personal loans designed to help you manage small emergencies when you don’t have the funds readily available. If you meet the qualifications for these loans, you should apply. You could get approved!
Only use personal loans for emergencies. They’re not meant to help with your holiday debt recovery.
How Can You Recover from Holiday Debts?
Make a Budget
Start by making a personal budget. This will help you organize your essential expenses for the month and see how much of your income you can reasonably put toward your recovery plan.
Pay Your Credit Card Down
Paying down your credit card should be a major priority. So, don’t make the minimum payments on your bills in the upcoming months. This debt will grow with interest, so it can easily get out of control. Make aggressive repayments right away — this will give you less to repay in the long run.
Get Cash Fast
One of the easiest ways to get more savings post-holidays is to return unwanted items to the store for cash. In some cases, you may only be able to get store credit. If that’s the case, see whether you can get store credit in the form of a gift card — you can sell these online for a profit.
You can also take this opportunity to declutter your closet, basement, and garage to find any used items and clothes to sell online for some extra cash. This is a simple way to boost your savings while simultaneously cleaning up your home.
And finally, you need to stay committed to your recovery plan. Don’t give up! You can get yourself back in good financial shape soon enough!