The tree has long been packed away, but the festive debt lingers well into the New Year for many. But there are options to help minimise the ill effects.
Road to recovery
It’s easy to get caught up in the festive season of giving – and the Boxing Day and End of Year sales that follow.
Australians spent almost $30 billion on credit cards this holiday season. If you’re among the many who did so, your repayment habits could be crucial to your credit health.
Paying off debts with the highest interest rates is a good idea. Attacking these first will reduce the total interest you pay compared to only making minimum payments.
It may hurt in the short-term, but in the long-run making larger repayments now will see you debt-free sooner.
Merge your debts
Taking out a personal or debt consolidation loan to pool your debts into one repayment may help relieve pressure.
There are various options for debt consolidation, including a home equity loan, personal loan or credit card transfer.
Some lenders are more flexible and can provide custom solutions to borrowers who need help even though they may be behind on repayments or have a credit history blemish.
Consider losing the plastic
With any debt consolidation, it is a good time to reconsider your habits. For example, replacing any old credit cards with a debit card could save you from pain down the track.
Ask for help
If you’re struggling to make repayments, reach out to your utilities, credit or loan provider before things get too difficult.
You may be able to negotiate a more manageable payment plan and breathe easier once again. For more details about debt consolidation options, contact a Liberty Adviser today.