3 On Your Side: Ways To Tackle Holiday Debt
By Jim Donovan
PHILADELPHIA (CBS) -- After the holidays -- come the bills from the holidays. If you blew your budget, January is a great time to start fresh with some new financial habits. 3 On Your Side Consumer Reporter Jim Donovan has advice on tackling holiday debt.
January can bring some cold, hard truth for consumers, as December's holiday merriment translates into a mountain of bills. The first step toward tackling holiday debt, is making a budget, charting what income is coming in and which expenses have to be paid out, and how much is left to put toward debt.
To make real progress on the existing debt, you're going to need to pay more than the minimum balance each month. Start with the most expensive debt first. That's not necessarily the card with the biggest balance. Look at which credit card has the highest interest rate and start there.
Also consider balance transfer offers, moving debt from a high-interest card to a zero-interest card, but only if you can pay off a balance before the introductory offer expires, and interest rates jump.
In the meantime, try not to add any more debt to what you already have. That may mean making some sacrifices for a few months until it's under control - skip dinners out, and bring your own lunch to the office. You maybe even want to consider selling unwanted holiday gift cards to bring in some extra cash.