Introduction
Paying off your holiday credit card bills can be very daunting, especially if you over spent, and if you paid with credit cards then you did over spend. It is always best to pay with cash so you do not get into debt to begin with but we all live and learn. It may take some time and some creativity to pay off your holiday credit bills but it can be done. It will take discipline, hard work, and patience. It will be worth it in the end when you are free from the holiday credit card bills.
Step 1
You will first want to stop spending beyond your means and start paying for things with cash only. This will help you to not build up any more debt on the holiday credit card. If you are an impulse buyer then it will be best for you to just cut up the holiday credit card so you can no longer use it.
Step 2
Add up all your monthly take home pay and gather together all of your bills. This will help show you how much money you are bringing in, how much money is going out in bills and how much extra you may have left over to put towards the holiday credit cards.
Step 3
Put the smallest holiday credit card bill first and the largest holiday credit card bill last. Pay the smallest bill off first. That will help boost your confidence by getting one bill out of the way. You can now put that monthly payment towards the next holiday credit card to get it paid off more quickly.
Step 4
You will continue paying off your holiday credit card bills this way. Paying off the smallest one first and each time one is paid off you will put what you were using for that monthly payment towards the monthly payment of the next debt. Each time you pay something off you will feel relief and your momentum will continue.
Step 5
If you do not have any extra cash flow to pay off the holiday credit card bills then you will have to find ways to bring in extra income. You can pick up extra hours at work, find a part time job, or sell things around your home that you no longer use or need. Any extra cash that you make should be put toward paying off your holiday credit card bills.
Tips
Cut up the holiday credit cards.
Put the holiday credit card bills in order from smallest to largest and pay them off in that order.
Use a cash only system so you are no longer building up debt.
You may have to cut back on other areas in your life such as lowering your cable TV bill, changing to a lower cell phone plan, or cutting back on eating out at restaurants so you can put that money towards paying off your holiday credit cards.
Do not give up. Set a goal and a reward system for reaching your goals. Your reward should not include spending money.
Sources and Citations
http://www.daveramsey.com/article/get-out-of-debt-with-the-debt-snowball-plan/
