For many, debt and the holidays go hand-in-hand. If there’s an upcoming holiday, you might naturally feel pressured to take on debt. Even if you had the best of intentions leading up to the happiest Christian holiday this year, you might still be experiencing the effects of post-Easter debt.
While post-holiday debt is far from uncommon, that doesn’t mean you can’t defeat this debt with confidence. In this guide, we’ll share expert advice on how to tackle your post-Easter debt no matter where you’re starting.
1. Be Kind to Yourself
At DebtBusters, we talk a lot about the mental health impact of debt. It’s easy to fall into a spiral of stress if you spent too much over the last holiday. While reflection is important, never beat yourself up over it. Holidays are overwhelming. Things happen, and you can move on from it.
What’s a better use of your time: agonizing over past purchases or considering ways to do better in the future? Of course, the answer is the latter. You can’t change past decisions, but you can learn from them in the future. Next Easter, you’ll remember this feeling and act with a stronger plan.
2. Pause Your Budget
Next, it’s important to put a pause on your current spending. You know you overspent this Easter. If you want to tackle your post-Easter debt, you need to give your credit cards a rest. While you can continue to spend on essentials (groceries, utilities, etc.), put a pause on any unnecessary charging.
Managing your debt is impossible if you’re still actively getting into debt. Check with your budget and consider ways to cut spending for the foreseeable future.
3. Check Your Post-Easter Debt
Third, it’s time to take a look at the damage. It’s hard to face the music (or your bank account) directly, but this is an important step to know how much you actually spent. By organizing your finances with debt in mind, you can recover from these poor financial habits.
Take a look at your current accounts. Where do they stand in terms of your existing budget? You might need to create a new budget, especially if your current one is leading to overspending. Do this sooner rather than later so you can start a new plan with ease.
4. Plan Your Repayment
Now that you understand your holiday spending, it’s time to make a repayment plan. Depending on how much debt you have, you might choose one of these methods below:
- Discretionary funds: Do you have funds put aside in a travel account, holiday savings, or another account that’s set aside for non-essentials? If so, putting some of these funds towards your debt saves you from carrying a balance.
- Consolidation: Another option if you have multiple forms of debt is to apply for a consolidation loan. Consolidation credit cards or loans often have a low or zero-interest balance for a number of months, giving you a chance to pay your debt more effectively.
- Snowball or avalanche: Lastly, you can opt for the debt snowball or the debt avalanche method of repayment. Both of these are proven to help you visualize your repayment, saving you money in the long run.
With any of these methods above, you can quickly take action against post-Easter debt. Holiday spending doesn’t have to define your financial outlook, and these are important skills to master.
5. Find Additional Income
Last but not least, you might have to recognize that you don’t have excess money to pay your debt in full or marginally. If you’re worried about your repayment time, you should find additional ways to bring income into your accounts. This can be through a higherpaying job, a side hustle, or even just selling a few things around your home.
Alternatively, home equity lines of credit or mortgage refinance loans can help you take advantage of funds you already have invested. It’s important to look ahead and consider the big picture when finding additional forms of income. This can be a learning opportunity, and it might open a wider world of financial planning to your budget.
Ultimately, accidents happen. Additional sources of income increase your sense of financial security, whether you put this money towards debt or emergency savings.
Make a Plan for the Future
Do you frequently find yourself spending more than you plan? Whether it’s during Easter, Christmas, or any other special occasion, this is an opportunity to plan ahead. Creating a long-term financial plan puts your needs first, helping build a strong foundation for the future.
Remember, you’re not in this alone. Our team is here to help you tackle your post-Easter debt, and we can start with a budget built to fit your needs. Contact a member of our team today to talk about the option that’s right for you.