Holiday Debt - How to Manage Money

The 12 Debts of Christmas Part Three

Holiday Debt - How to Manage Money

I just spent my next months wages

Fa-la-la-la-la, la-la-la-la

And this spending feels contagious

Fa-la-la-la-la, la-la-la-la

I just bought a diamond necklace

Fa-la-la-la-la, la-la-la-la

I think that my spending's reckless

Fa-la-la-la-la, la-la-la-la.

My credit cards are at their limit

Fa-la-la-la-la, la-la-la-la

All my gifts should have been hand knit

Fa-la-la-la-la, la-la-la-la

Now at least I have a reason

Fa-la-la-la-la, la-la-la-la

To be sad this Christmas season

Fa-la-la-la-la, la-la-la-la

Sixteen days until Christmas. The evenings are getting colder, the days shorter and I bet your wallet is bulging with receipts. Right now is when you should do something to remain in control of your spending. You don't need to break the bank this year and here are a few ways that will help you discover how to manage money and keep out of debt when the credit card bill comes this January.

HOLIDAY DEBT TIP 5: Combine Your Balances

You might have 3 or 4 separate credit cards with unpaid balances. It's time to combine them into one. Before you head out to the malls with a bulky wallet in you pocket or purse, look for one 'low interest rate balance transfer credit card'. After you discover one that is right for you transfer each of those balances onto the one credit card. After all, making one monthly payment on one single credit card will be far more productive than attempting to pay the balance off of more than one card.

If you can't find a 'low interest rate balance transfer credit card' then you should use another approach. Snowballing your debt (now that's Christmas irony) or Debt Stacking. In short, Snowballing or debt stacking is the process of making a large payment to one credit card while continuing to make the minimum payments on each of the other credit cards. When you've paid off that first card take that total amount and add that payment to the next credit card. Repeat the same process until each of the credit cards have a balance of zero. The only way this will work is if you don't add more debt. Unfortunately you will not notice the progress until next year but I can promise that it works and is a terrific way to learn how to manage money.

HOLIDAY DEBT TIP 6: Buy in Bulk

Now, more than any other time of the year is ideal for buying in bulk. You might spend slightly more, but it will make next month a breeze for when you shop. Every purchase made should be on sale and in bulk. Grocery stores all want you to shop with them and put out the best flyers in December. Spend a day searching for amazing deals. There are lots of coupons or deals you can find on the Internet to help lessen the cost. Those coupons can be anything from candies, to steals on electronics and even shoes. Take a few minutes every day to find these deals. Every penny you save makes it all worthwhile. Christmas can be very expensive because we all tend to spend more than we had hoped but by finding deals you can lessen the burden on your wallet.

In my next post there is a fun filled carol you can sing with family and friends and there will be a couple more tips on how to manage money and stay debt free this Christmas!

DID YOU LIKE THIS ARTICLE? SHARE IT WITH FRIENDS!

You can pay off your debts and save money at the same time! Say goodbye to your boss forever! A blog that will show you the secrets of the wealthy: http://www.howtomanagemoneytips.com

Get a free budget sheet, net worth calculator, tools and more: http://www.howtomanagemoneytips.com/ebook2.html