After the holidays are over and the dust settles, it is time to take stock of the situation. For most of us it is time to brace for the approaching wave of credit card bills that all our celebrations have cost us – with interest. It is easy to get depressed when faced with mounting debt and having to find ways to pay it all off in time. Do not worry following these steps can help to alleviate the burden and save money.
Don't Ignore the Debt
Faced with a mountain of bills, it might seem reasonable to hide under the covers and hope it all goes away. This is understandable, but does nothing to help the situation. Ignoring credit card bills and other monthly payments only serves to increase the amount owed in terms of penalties and interest. This means that one will be paying much more than was originally owed. Also, each time a payment is missed it makes a bad mark on your record and affects your long term credit score.
Stop Spending Temporarily
Now that the holidays are behind us, it is a good idea to stop any extra spending. Spending any more will only make things worse and every dollar spent only serves to lengthen the time you are in debt. Instead, use any extra money that would ordinarily used for splurging and put it toward the monthly payments. This can help to reduce the debt faster and lower the overall amount spent on extra interest.
Consolidate the Balances
Spreading the payments out across many cards, often with varying interest rates makes it difficult to make any kind of progress in paying them off. These days, many companies offer a way to consolidate debt. A good idea is to consolidate debt by taking all those multiple balances and transfer them onto a low interest rate credit card. By consolidating, people can make payments toward a single balance at the lowest rates.
Pay Extra Every Month
Concentrate on paying off the debt quickly and make sure to pay more than just the monthly minimum required.