First Person: 5 Tips for Paying Off Holiday Debt Quickly and Painlessly

Did you blow your Christmas budget this year? You're not alone. With all those awesome Christmas deals and discounts of 50-75% and more, many of us found it hard to resist the temptation of going a little overboard with the gift spending.

If January leaves you wondering how to pay down that Christmas debt, here's some easy and painless tips for paying down that Christmas debt lickety split.

Return what you really don't need.

Retailers ease up their return policy in the weeks immediately following Christmas and will often give customers cash refunds even without a receipt. If you were given some ugly clothes for Christmas, received duplicate gifts, have some unopened Christmas lights or even brand new still-with-the-tag clothes in the closet that will never be worn, early January is the time to return these items for cash. Use the cash to pay down your Christmas debt instead of buying something else.

Get those refunds and rebates started.

Did some of your childrens' (or spouse's) gifts come with rebates? Before those receipts, box tops, and proofs of purchases disappear, prepare and mail rebates and refunds as soon as possible. These rebates can also help pay down Christmas debt.

File your taxes early.

By law, employers and investment companies must mail out W-2s and 1099s by January 31. The minute these tax documents arrive, file your taxes to get your tax refund coming early. Electronic filing and electronic deposit means that your tax refund can be in the bank as early as two weeks. Leveraging your tax refund to reduce Christmas debt makes great sense.

Visit Missingmoney.com.

At least once a year, I visit the website of our state's tax commission to see if our family has any unclaimed funds coming our way. The "unclaimed property" division of a state's treasury is where insurance companies, utility companies and others send unclaimed money for safe storage. Missingmoney.com is the easiest database I've seen that compiles links and forms for all 50 states. It's safe, easy, and as much fun as hunting for buried treasure. If you do have some unclaimed money, this missing cash can also be used to pay down Christmas debt.

Tweak your budget.

One strategy to reduce Christmas debt is to tweak your January and/or February budget to free up funds. Cutting back on entertainment, eating out, or even the grocery budget just for one or two months may free up enough cash to pay down Christmas debt in no time at all.

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