How to manage holiday debt headaches
January 17, 2019 07:01 AM
ALBUQUERQUE, N.M. - The tree is down, and the decorations are packed up. Now, the post-holiday headache is setting in. From the gifts to hosting parties, the costs of Christmas add up.
“Average American spends $2,400 to $2,500 for holiday spending over a year,” Gage Kemsley, Vice President of Oxford Wealth Advisors said.
And many of those presents went on plastic! Kemsley said shoppers added about a thousand dollars to their credit card debt this holiday season.
“That can kill ya! I mean, if you're just making the minimum payments, it can take years before that holiday loan is paid off,” Kemsley said.
If you want to bounce back from those holiday purchases, Kelsey said you have to stop the financial bleed.
“My parents would say put that card in the freezer, somewhere where you can't access it, where you don't think to grab it,” Kemsley said.
Then make a realistic plan for paying off the debt fast. If you're short on cash, consider a side job, like driving for Uber.
“We're filing our taxes right now. When you get that tax refund back, it might be a good opportunity to use that to pay down a little debt,” Kemsley said.
And if your debt is spread over several cards, consider a loan for your loan!
“As a matter of fact, many credit card companies will offer these year or two-year loans that offer lower rates than their credit cards do. And that might be a very effective way to get out of debt,” Kemsley said.
Created: January 17, 2019 07:01 AM
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