

3 tips to pay off your Christmas Debt
As we pack away the decorations, return from holidays, settle back into work, the credit card statements start rolling in and we realise how much we over spent during the festive season, for many Australians the post holiday blues can be a tough time. If you’re facing a Christmas Debt Hangover, the next few months will be critical to ensuring you get your finances back on track again. To help you manage your festive season debt, and to ensure you avoid overspending at Christmas time this year, here are 3 tips from the helpful Loan Market Elevate team:
1. Take a fresh look at your budget
Sticking to a budget will be more important than ever over the coming months, as you work hard to pay down your debt. Once you’ve assessed how much debt you have to repay, take a fresh look at your budget and work out the maximum amount you can afford to repay each month from your household budget.
You can use a simple spreadsheet, or use our handy online budget planner tool – to track your income and expenses. By tracking how much money you earn, how much you can afford to spend each month, and how much you need to save, you’ll avoid compounding your debt problem and have a workable solution to clearing your debt.
2. Avoid taking on any more debt
Before your debt spirals out of control by adding to it with even more spending, try following these simple principles:
- If you can't afford it without a credit card, don't buy it
- Pay off your credit card balances in full.
- Cut-out the wants, focus on the needs for now.
- Don’t use your credit card for cash advances.
- And limit the number of credit cards you have.
- If you have a home loan, review your current rate and potentially refinance to lower your interest.
- Consolidate your debts and reduce your monthly commitments.
3. Start saving now for Christmas this year
It might seem crazy to be thinking about Christmas shopping now, but hear us out! The best way to avoid a Christmas Debt Hangover this time next year, is to plan now how you’re going to shop this holiday season. Here are some helpful tips:
- Start planning now how much you want to spend this holiday season
- Set yourself a saving goal and decide how much you can realistically put into a Christmas savings fund each month. Even small consistent savings throughout the year can make a big difference when it comes to spending this holiday season.
- Don’t leave your Christmas shopping until December, shop throughout the year to take advantage of seasonal sales, discounts or offers
If you’re stuck with a Christmas Debt Hangover and would like help getting your finances back on track, contact Loan Market Elevate today and connect with one of our experienced and friendly Hill’s District mortgage brokers for complimentary personalised financial advice that is relevant to your lifestyle and situation.