Gotten Over the Holiday Euphoria? Now’s Time to Think About Wiping off Your Holiday Debts!Consumer Credit | January 8, 2010 at 1:40 am
Halloween, Thanksgiving, Christmas and New Year! Hope your holidays rocked! But now, like all good things, they are over and you’ve got to get to pay up your holiday debts if you’ve managed to get into any. If the onus of filling Santa’s bag with gifts was on your credit card company, then better get geared up to pay up all the dues now and in the coming months. If you default, the interest rates will simply hike up. Not only that, defaulting may actually affect your credit score and you might not actually get any credit from your credit card company(s) in future. So prepare yourself to pay up those bills while the year is fresh and your enthusiasm for meeting your aspirations and challenges is fresh too.
Here are some tips that you could use to pay up your bills:
- Set deadlines for clearing your holiday dues as soon as possible. How about the end of March? The sooner you clear, the better it is for you in terms of interest rates and credit score. Don’t pile up your debts over long periods of time. Long credit payment might look convenient as the monthly installment turns out to be a very low amount but this is not always advisable as the interest rates are generally going to be very high so that the final amount that you pay turns out to be a huge amount. Getting off debt quickly is always recommended to prolonged payment periods.
- Set a finite period of payment. Set a start date and an end date for clearing off your dues and strictly stick to it.
- Don’t use your credit card for making further purchases till you pay off your holiday dues. How can you ever get over paying up your debts if you keep piling them up? When you go shopping for a few days now, just leave out your credit card at home. The best thing that could happen to you during this period is to forget your credit card at home. Making cash payments is recommended. You not only have no dues, but also get attractive discounts from retail outlets on cash purchases.
- People who pay with cash tend to spend lesser than those who use cards. Isn’t it hard for you to shell out cash when shopping in comparison to using a credit card?
- Make a plan to clear your dues. The plan will give you a clear idea of your present monetary status, the status after you pay up your dues and if at all there is enough money with you to pay up your debts in the time period specified.
- Strictly keep an account of all your expenditure including the amount you’ve spent on a cup of coffee from the vending machine for the next one month or so.
- Be more frugal, review your credit card for excess unjustified charges, and try to reduce your taxes.