Climbing your way out of holiday debt

By Gaetjens Nestor

3 quick steps to bring your credit card balance down

During the holidays, there is no such thing as expensive when it comes to our loved ones. Society puts immense pressure on shoppers to buy items we don’t need so we end up spending money we don’t have. As a result, our dreaded credit cards are used to purchase mounds of gifts.

After we tuck away the holiday decorations to ready for a fresh start in the New Year, the dreaded bill comes in the mail. After checking the statement and seeing purchases we don’t even recall making, we then ask ourselves: “How are we going to get out of this debt?!”

Here are essential tips to getting out of holiday debt:

Acceptance We seem to forget how important acceptance is when it comes to debt. Accept your debt, and then plan how you will sacrifice to get that bill paid. Something will have to change – that is the secret.

Interest Rate Check your credit card’s interest rate. See if you can transfer the balance to another credit card with a lower interest rate to pay less finance charges.

Budget Set a budget with a specific debt payoff goal. You must decide how soon you can realistically pay off the debt. This deadline will help you plan and conserve your spending month to month.

Once you tackle these three steps, 1 and 3 being the hardest – you will be well on your way to erasing holiday debt. Speaking to a financial advisor or accountant can also help guide your way out of debt. Being in debt is 40 percent financial and 60 percent psychological. What you thought was impossible can turn into a reality by talking to a professional who may help you.

Gaetjens Nestor is an accountant with over 10 years experience helping the Caribbean community with debt related issues, business setups and personal taxes. If you need more information on this or any other financial topic, email Gaetjens at [email protected]