It’s not just the head that suffers after the frequent festivities that come with Christmas, but the wallet too.
A recent UK poll revealed that 36% of Brits worry about money and that 8% of consumers relied on a credit card or loan to fund their Christmas celebrations. For these people, they may now be left with a financial hangover they are struggling to shift.
If you are struggling to pay off your Christmas debt, Your Money suggested a few things you can do:
1. Set a budget
Work your monthly payments into your budget to ensure your debt is paid off as soon as possible – otherwise the interest rate on what you owe will see you paying a lot more than you initially did.
2. Consolidate your debt
It may be easier for you to gather all that you owe into one location. Instead of repaying bits of your credit card, while balancing loan repayments, consolidate it into one place.
3. Check your credit rating
Before consolidating you may need to check your credit rating to get a better idea of whether or not you will be approved for a new card or loan. Bear in mind that even with a good credit rating, there is no guarantee of approval.
4. Shop around for a good personal loan
With a personal loan you can make fixed payments over a specified period of time. Try to find a lender with a low interest rate, although the deal you end up with will depend on your credit rating.
5. Review your outgoing spending
If you feel overwhelmed by how much you have to pay back and are struggling to get approval for a loan or card, you may need to find alternative repayment methods. Yet first of all you should review how you spend your money. Take a look and see what cuts you can make to give you more cash to pay off your debts. Make sure you focus on paying off the debt with the highest interest rate first.
