Christmas puts a financial struggle on every family, with most people using credit cards, loans or buy now pay later schemes just to pay for the big day, but this can take several months to pay off. If you are struggling with Christmas debt, don’t worry, we have put together some helpful tips that will help you pay it off faster.
Work out what you owe.
Make a list of who you owe money too and write down how much you pay each week/month. This will help to work out which debts are the most important ones and if you can afford to pay them all. If you are in debt with your rent and council tax, always make sure to pay these first as they are the most important bills.
Work out how much you can pay.
After you have made a list to work out who you owe, you then need to make a list of all your weekly/monthly outgoings and add them up. This will help you to create a budget to make sure all the essentials are paid for and any spare money can help to chip away at any debts.
It may not be a lot of spare change after you have paid for everything, but even paying a little towards your debts will make a big difference.
Prioritise your debts.
When paying off your debts it is important to work our which ones are a priority. You may owe lots of small amounts to different companies, but have a look at the interest charges. You may have a larger debt that has a lower interest rate than the others. If you pay those first, it will save you money overall.
Avoid taking out more debt.
It may seem like a good idea to take out more credit to pay off what you owe, but in the long-term this can lead to you paying more in interest. It is much better to try and make a few cutbacks to pay you debts off, than to end up owing more money.
Save for next Christmas.
Its never to early to start saving for Christmas, and even if you can only put a small amount away each week, it will help ease the pressure when the festive season comes around. Don’t forget that with Moneyline, you can round up your repayments to help save for anything you may want to use it for in the future, including Christmas.
If you feel like your debts are becoming too big to manage there are lots of charities out there who can help. Citizens advice, Stepchange and Debt Advice Foundation are all organisations that offer free debt advice, either online or in person, and can help make your debts more manageable.