In Over Your Head?

The easiest solution to managing post-holiday debt is, of course, avoid getting into debt during the holiday season in the first place. Unfortunately, that's easier said than done- especially with the current economy and everyone's impulse to buy bigger and better gifts than what they truly can afford. So, what do you do when you find yourself getting insanely high credit card bills after the holidays? Or finding yourself trying to "juggle" your bills?

Quickly, before you can talk yourself out of it- cut up your credit card! No seriously, I mean it. If you absolutely can't bring yourself to actually cut up your credit cards, make sure you put them in a place that's not easily accessible to you. A bank safety deposit box, a locking safe in your home, etc. Find someplace that won't be easily accessible to you and put your credit cards there. This sounds extreme, but it's important not to charge anymore to already existing credit card balances.

If you're already "maxed out," it's important to try to work with your credit card company and pay as much on the card(s) as is possible. Don't skip payments or make them late, this adds finance charges and late fees, which means that whatever you pay won't really be going to your balance. You'll be paying for the dubious privilege of "carrying" that maxed out balance. In the long run, you'll still have a debt that's barely been touched.

If you don't have credit cards and you've found that you've over-spent for the holidays, then you are indeed in serious trouble. If you live paycheck to paycheck, you could find yourself going without a roof over your head, your utilities could get shut off, and your vehicle could even be repossessed. Not to sound like a cold-hearted "Grinch," but, you'll have a heavy amount of work ahead of you to get ahead and get out of your post-holiday debt.

If you find yourself in serious financial trouble after the holidays, do not, I repeat- do not- use a "Payday Loan" company or post-dated check-cashing loan. This will get you in worse trouble than you started out it. The problem with "Payday Loans" are this- you can get cash easily, and it's loaned against your next paycheck. The problem is, you end up paying a huge amount of interest, plus the original amount of the loan, then you find yourself in the position of having to renew the loan just to be able to cover your bills.

Payday loans are nothing more than legalized loan sharking. Do not go this route. If you are in serious financial trouble after the holiday season, try to cut unnecessary items from your budget.

Have a cell phone you rarely use, yet pay a hefty monthly bill on? If you aren't on a contract, cut your service and get a prepaid cell phone using cards. If you're under contract, see if your cell phone company will let you chooser a lesser plan. Put any money saved towards getting yourself out of debt.

If you have a monthly cable bill, yet seldom watch television, or find that you usually watch "basic" channels- cut your cable service or drop unnecessary channels. You might save a pretty large chunk of cash this way, and you'd be able to put it toward getting yourself out of post-holiday debt.

Try to cut your grocery costs, if at all possible. Try using generic brands, shopping sales, and maybe even drinking water instead of soda pop. This can be a challenge, but can help you save money in the long-run.

No one likes to be in debt, and it's a long, hard road out once you find yourself trapped in the pit of debt. Don't despair, your situation isn't hopeless. If you find yourself unable to re-work your budget or be able to find your way out of the trap of debt, call your local debt counseling/consolidation company, or even contact your bank or other financial institution.

Most of these places can help you find your way out of debt, and make a budget that will keep you out of debt- regardless of what time of the year it is. Don't panic. Everyone reaches a time in their lives where they find themselves in over their head about something, just keep working at it, have patience, and start working your way out of the trap of post-holiday debt.

One more thing, for future reference- Don't feel that you have to spend more money than you have or should during the holidays, 10 years from now, no one will remember or care that you spend an insane amount of money for the holidays, they'll remember whether or not you enjoyed the holiday season with them or not. It's not the gift that matters, it's the thought that counts