Still Need to Shed That Holiday Debt?

Posted on 07. Feb, 2006 by in Saving & Investing

If you weren’t able to follow my advice about not going into debt this holiday season and you find yourself still paying off the Tickle Me Elmo doll sitting on your MasterCard, here is a bit of advice for shedding that unwanted holiday weight debt:

  1. Stop Charging: the most important thing you can do now is break the cycle – start paying in cash instead. Cut the cards up if you have to. If you can’t afford it, that’s a sign that you shouldn’t buy it.
  2. Plan: sit down with your credit card bills and figure out how long it will take to pay off that debt. Hopefully you will realize, like many people unfortunately do not, that paying the minimum balance isn’t going to cut it. If you need help with the calculations, Bankrate.com has a free Credit Card Calculator.
  3. Plan Some More: now that you know where you need to go you need to plan how to get there. You need to budget in order to find out where you are spending so that you can find out where you can cut back to pay more than that minimum monthly balance.
  4. Consider Other Income Sources: most people hate to hear this, but consider getting a part-time job and using every cent from it to pay off that debt. If that’s not a possibility, consider a garage sale or eBay blitz to get rid of unwanted items and earn some cash to pay down your debt.

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