If you are one of the many Americans spending more during the holiday season, you are not alone. It is common to experience an uptick in spending in the later months of the year, and this can lead to even higher debt balances for those already struggling with debt. You may find yourself swiping your card more than usual, and this can lead to a heavier debt burden, accumulating interest and other issues that can impact your financial health as a whole.
Studies estimate that as many as one-third of Americans accumulate debt to pay for gifts and to cover holiday-related expenses. For many, this debt is in addition to other balances they currently owe, including debt they are carrying from last year’s holiday season. Credit card debt can be very difficult to pay off, especially when you are still spending.
Answers to debt concerns
One of the first steps in addressing debt from the holidays is to stop adding more debt to existing balances. With interest rates, balances can continue to grow, even without new spending. Keeping these balances from growing is essential. Average credit card interest rates are around 21%, which is an increase from the average of 16% a few years ago. The following can help one manage credit card spending during the holidays:
- Make a plan of what you need to buy, and don’t deviate from your list of gifts and necessary purchases.
- If you have credit card rewards, use these benefits in order to make new purchases or to pay for your travel expenses.
- Be honest with your friends and loved ones about your limits on spending this year to minimize pressure to buy more or buy expensive gifts.
If these measures are not enough to help you deal with your debt issues, you may consider other steps to address the balances. Through bankruptcy, you may be able to find a way out of your current debt problems.
A better financial future
Bankruptcy may not be your first choice as a way to deal with your debt, but it could offer you a way to secure a better financial future for you and your Tennessee family. This process provides an opportunity to deal with credit card debt and other forms of unsecured balances, and it can provide relief from efforts from debt collectors to secure payment. An assessment of your financial situation can help you understand if bankruptcy is right for you.
