Everyone does it: spending too much money at Christmas is almost as certain to happen as Christmas is. When you are thinking about your loved ones, your family, and your friends, it can be hard to stop spending. Nearly everyone splurges on Christmas, and nearly everyone regrets it by the time the New Year rolls around. If you were one of the many different people who spent too much during Christmas 2008, there are a few different steps that you can take to fix the situation. By following these different tips, you can fix that over spending as soon as possible.
1. Transfer your credit card balance
If you have put a lot of money on one credit card and are feeling overwhelmed, or are looking at a high interest rate, apply for a 0% balance transfer to a different card. When you do this, you can either reduce or remove your credit card balance from one card and put it on another one that has better interest rates. You often will find special values that will save you money (through a lack of interest for a certain period of time) when you transfer your balance over.
2. Reign in your spending
If you have spent too much during Christmas, you need to make sure that you reign in your spending now. You cannot fix the mistakes of over spending if you continue to spend in the same way, or in ways that are not conducive to saving money and paying off bills. By giving yourself a budget for everything that you spend money on, you can be sure that you are keeping your spending under control.
3. Aim to be, and stay, debt free
Your goal should not to be to simply pay down some of the damage done from Christmas 2008. You want to make sure that you aim to be debt free, and that you aim to stay debt free. If you can stay debt free, you will be less likely to find yourself in the same position next year. So whether that means overpaying on your credit cards or taking out a debt consolidation loan, get yourself debt free as soon as you can!
4. Start saving money for a rainy day
If you start to save money once you have paid everything down, you can completely reverse the damage that you have done during the Christmas season. By setting up an emergency fund, you will actually be able to make sure that the next Christmas season does not do as much damage as the last one did.
Everyone does some sort of damage to their personal finances when Christmas comes around, and Christmas 2008 was no different. If you know the different tips, you can help yourself to fix the over spending issue as fast as possible. By reigning in your spending and aiming to be debt free, you have already won half of the battle. Once you transfer your card balance and pay your balance and full, you can begin saving. Saving will allow you to be prepared for the Christmas to come so that the damage is not as painful the next go around.