Can you pay off Christmas debts faster?

Had an expensive festive season? If you've borrowed money to help cover the cost of Christmas, find out how you could get back in control of your finances.
Christmas is nothing if not expensiveChristmas is nothing if not expensive
Christmas is nothing if not expensive

Christmas is a time for giving, for spending time with your loved ones and for enjoying a lot of great food. When you go back to work after the festive season is over, it’s easy to feel some post-Christmas blues.

And if you relied on credit to pay for the presents, decorations and office parties, you might have a sinking feeling when you get your credit card bills through this month. It can be tempting to ignore these or just focus on paying off the minimum, especially if it’s a few weeks until the January payday. But it’s best to avoid doing this if you can, or you could still be paying off what you owe by next Christmas.

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What do you owe? Before you can focus on clearing your debts, you need to take a look at how much you actually owe. If you’ve borrowed on a few different cards and maybe even taken out a loan, get all of your different monthly statements together. By doing this, you’ll be able to see how much you owe – and put a plan in place to clear it.

Pay off expensive debts: If you can afford to put at least the minimum towards all of your non-priority debts every month and you’ve got some extra cash, focus on clearing the bill with the highest APR first. The longer you leave expensive debts, the more they’ll cost you in the long run so it’s good to pay them off as soon as you can.

Take a look at your bills: Struggling to afford debt repayments? Look at your household budget to see if you can free up any extra cash to put towards your debts. You might be able to cut back on what you spend on takeaways or maybe even just car share with someone at work. Even little savings will help you to clear your debts quicker.

Can you consolidate? If you’re trying to pay off debt on a credit card with a high APR, a lot of your monthly payment will just go towards clearing the interest. This means it can take a long time to pay off. Instead, look if you can move what you owe onto a balance transfer credit card. With a lower interest rate, it can be easier to clear the balance.

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Get help: You don’t have to cope with your debts alone if you’re struggling to afford them. If you can’t even afford the minimum payments every month, it might be worth seeking help from a debt advisor. They can give you advice and help you to understand your options going forwards so you know the best ways to tackle your problems.

And once you’ve got back in the black, why not try giving your finances a fresh start in 2017? Take a fresh look at your budget and try and put some money away every month. If you can build a nest egg you might be able to get through Christmas 2017 without borrowing anything!

Debt Advisory Centre: 0161 871 4881