Tips for Paying Off Your Holiday Bills

Everyone knows that the best way to pay off debt is to avoid it in the first place. However, the holidays always bring spending and bills. This year will see more consumers in debt than ever before, with the high unemployment rates and higher numbers of individuals using credit cards to finance their holiday shopping. If you have holiday bills, there is no reason to despair - you can pay them off quickly by using the following tips.

First, make a list of all of your bills. Then organize them. There are two ways to do this. While many debt counselors and financial gurus rightly advise consumers to pay off bills with the highest interest first, this can lead to frustration. Some individuals may find it easier to organize bills from the smallest total to the highest total, and pay off the smallest bill first before moving on to the next one.

Next, make sure you have an emergency fund on hand. While you are paying off your holiday bills, keep your emergency fund around $1000 in easily-accessible cash. This will allow for any rainy day expenses or emergencies, so you aren't derailed from paying off those holiday bills by any surprises.

Then, put yourself on a budget. Make sure you plan for your normal bills, utilities and living expenses. Plan for every dollar, so you'll know exactly where your money is going, and where any incoming funds should go. Be sure to allow yourself some fun money for entertainment - you'll be less likely to stick to your budget if there's no room for things you used to enjoy. As with everything, practice moderation.

Next, begin paying off bills, smallest to largest. As you pay each bill off, you might wish to reward yourself with a small, inexpensive treat. This will motivate you to work hard to pay off these bills.

If you racked up a lot of holiday debt, it may be wise to increase your income either temporarily or permanently to help you pay off those bills faster. One great way to do this is by selling things you have laying around the house that you no longer use. Electronics, books, DVDs, collectibles and even clothing are great sources of income. You can sell these items locally, or list them for sale on eBay.com or Bonanza.com. This is a great source of extra cash.

And finally, if you are looking to increase your income to pay off debt faster, consider a part-time job at a business in your local area. Many businesses hire seasonal or part-time help with flexible hours that will work around your full-time job. You may also wish to sign up with Associated Content by Yahoo! and get paid to write about things you enjoy. The pay is good and you can write on your own schedule. This will give you added money to throw at those holiday bills while you have fun doing something you enjoy.

While it may not be possible to make it through the holidays without running up debt, it IS possible to get it all paid off in a timely manner. Good luck, and happy holidays!