The Christmas holidays are now over and a quick review of your holiday spending shows that you caved. You got caught in the euphoria of the season and spent more than you intended – now what?
How do you bounce back after your holiday splurge? The first piece of advice is ‘don’t panic’! It happens to the best of us, bouncing back from your current financial situation is more important than panicking. So if this is you, let’s chart your course to recovery.
The first step in recovery is to assess your overall financial situation by identifying how much was spent from cash savings, credit cards and cash in hand. Examine your monthly budget as well as your short and long-term financial goals. Make a list of your debts, payment due dates, minimum payment amounts, interest rates and the timeframe in which you would like to pay down the debt. Also, do not neglect your other financial goals: paying down the debt does not mean that saving stops.
Having done your assessment, the next step is to select a payment strategy that works for you. Pay down the credit cards with the highest interest rates first. If that seems too daunting, try paying down your smallest balance first so you can see your progress. Always strive to make more than the minimum payments, if you can, but most
importantly – always pay on time.
One way to ensure that payments are paid on time and on schedule is to set up automated payments, either through standing orders from your bank account or directly from your salary. This will eliminate late charges which will only increase the amounts required to be paid.
To continue reading, purchase Vol.8 #4, 2016 Issue.
Share this post:
The Christmas holidays are now over and a quick review of your holiday spending shows that you caved. You got caught in the euphoria of the season and spent more than you intended – now what?
How do you bounce back after your holiday splurge? The first piece of advice is ‘don’t panic’! It happens to the best of us, bouncing back from your current financial situation is more important than panicking. So if this is you, let’s chart your course to recovery.
The first step in recovery is to assess your overall financial situation by identifying how much was spent from cash savings, credit cards and cash in hand. Examine your monthly budget as well as your short and long-term financial goals. Make a list of your debts, payment due dates, minimum payment amounts, interest rates and the timeframe in which you would like to pay down the debt. Also, do not neglect your other financial goals: paying down the debt does not mean that saving stops.
Having done your assessment, the next step is to select a payment strategy that works for you. Pay down the credit cards with the highest interest rates first. If that seems too daunting, try paying down your smallest balance first so you can see your progress. Always strive to make more than the minimum payments, if you can, but most
importantly – always pay on time.
One way to ensure that payments are paid on time and on schedule is to set up automated payments, either through standing orders from your bank account or directly from your salary. This will eliminate late charges which will only increase the amounts required to be paid.
To continue reading, purchase Vol.8 #4, 2016 Issue.
Share this post: