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Pay off those piling Holiday Bills using these tips(2021 Edition)

 


The holidays bring a variety of gifts and prizes.
This is why experts suggest that it is a good idea to start planning now on how to resolve the debt that you are about to face.

Abbey Henderson, CEO of Massachusetts-based Abaris Financial Group Concord, said, “You can create a real plan that isn't just figuring it out on the fly. It usually doesn't make sense. "
1 in 3 Americans are planning to pay off debt this season, according to a Credit Karma study. However, not paying your debit card on time can get expensive. According to Bankrate, the average interest rate is 16%. 

Here are some steps you can take now to reduce your worries about your debt in the future.

Take Inventory

Make a list of the items you want to purchase and how much you want to use. List anything you are already buying with the price.

Jamila Souffrant, creator of the financial education podcast, said, "You're going to want to look at that number and change it."

"So you can't wait until your purchase is complete."

If you're late for a purchase, go for it.

“Waiting until the last minute to buy a gift can cost you a lot of money at a time, which can be frustrating and expensive and difficult to pay off rather than exposing your expenses. Many months,” Colleen said McCreary, Consumer Finance Lawyer and Head of Human Resources. Resource Manager at Credit Karma.

To cut down on last minute delivery costs, buy locally or consider an inexpensive gift item. Do not give away free cards as it is more stressful to put money into them

Use credit/debit cards wisely

You need to know which debit/credit card you're using and when your purchase is complete, said Sufferer.

For convenience, we recommend that you use only one card. However, if you use multiple cards, you may be able to pay on time if the expiration dates are different. It is important to know how much you are spending and when your bill is paid.

Ideally, you want to pay off the balance so that you don't get into debt.

Cash out your rewards

If you already have a debit/credit card that offers freebies like shopping points or refunds, consider using it as a gift rather than cash or credit.

You can save money by using apps or browser extensions like Honey or Rakuten that offer coupons and giveaways for purchases

Get ready for 2022

If you don't have the budget for next year, start one. Henderson is looking at how his expenses will be this year. If you don't have enough money to pay for your retirement expenses, see how much you can change after a few months. There are also costs that can be deducted, such as multiple streaming services, if needed.

“Learn how to make it a point to pay off your debt without saving money in the first place,” he said. You can also count your savings for the next vacation in your 2022 budget so you don't have to worry about extra spending.

Payment Priorities

If you're in debt, Henderson said, you should aggressively pay off the card with the highest interest rate first.

If your debt is too high, consider consolidating your debt at zero or lower interest rates. “If you think you can pay your bills on time, you can save a lot of money,” .

Don't blame yourself

Try your best not to overspend, but don't blame yourself for overspending.

“New Years Eve is a tough time, and because we've had a tough year, we'll be affected by the expenses,” McCreary said.

“Think of this as learning and investing your time and energy to create a plan that will help get your finances back on track. "