Having credit card debt around this time of year is no fun. The festive season is traditionally a time of excess, a time to splash out on our children, our spouse, our parents and our friends. If we are going to relish great food in great company, we can’t have a pesky thing like debt lurking in the back of our minds.
So we asked experts, Colony Associates what’s the best way to get out of credit card debt?
Contents
Here was their advice.
The biggest problem with most credit card debt is that you’re saddled with high-interest rates. That’s why we make it a priority to offer our clients a single monthly payment with low-interest rates.
The first step to reducing your debt is reducing your interest rates. Here’s what we want you to know to help you take back control of your finances.
Start by Doing an Audit
The first thing you want to do is to take out all your credit cards and store cards and tally up three things.
One, what your interest rate is on each card.
Two, what you owe on each one.
Three, what the minimum payment is on each card.
Pay More Than Your Minimum Payment
Add up all your minimum payments each month and make sure you cover those.
If you can – double up on your minimum payment so you can start seeing your credit card debt reducing month-by-month.
Then take whatever you have left in the kitty to start paying off the card with the highest interest rate.
And here’s my best advice.
What to Do with that Year-End Bonus
Our first inclination is to blow it all on your vacation and presents.
While you’re in credit card debt, it might be a good idea to opt for a staycation instead.
If you receive any windfalls, like a year-end bonus, use it to pay off your card if you can.
Not getting a Christmas bonus because you’re self-employed?
Here’s an EFT Tapping session I did on how to get a year-end bonus.
Reduce Spending Wherever Possible
Why not make your Christmas presents this year instead of buying them?
Start a new tradition in your family where you each learn a new craft and make special, personalised gifts. There’s a great list for you on Happy Hooligans: 40+ Gifts Kids Can Make {That Grown-Ups Will Really Use}
This will also keep the kids busy on your staycation and could even spark off a side hustle.
And while we’re on the subject of side hustles.
Start an Online Business
If you’re not bringing in enough money to start clearing your debt, it’s time to look into generating more income. I’ve found the best way to bring in some extra cash from the comfort of your own home is to start an online business.
In this video, I share my top tips on getting started.
Trusting this helps you find the best way to get out of credit card debt.
Have a wonderful festive season.
This post was sponsored by Colony Associates. This is one of the ways I earn money on my blog.