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Dealing
with your Holiday Debt
By
Ignacio R. Bunye
February 06, 2012
Have
you experienced the classic “holiday
debt hangover”?
The
Financial Consumer Affairs Group (FCAG)
of the Bangko Sentral ng Pilipinas
said that this type of hangover is
usually experienced during the months
following the Yuletide season —
when the shopping, parties, and gift-giving
have practically drained most of your
financial resources.
Worry
not, the FCAG has come up with another
list of useful tips so you can wipe
off your holiday debts and still look
forward to a bright New Year:
•
Conquer your fear and bravely face
the situation. The first step —
and sometimes the most difficult —
is to admit that there is a problem
that needs to be fixed.
•
Assess the damage. Gather all bills
and receipts and tally up your debts.
•
Make a serious plan and a firm commitment
to pay off and clear all debts within
a specific time frame or schedule.
•
Pay debts as quickly as possible to
prevent interest charges from ballooning
and to protect your credit standing.
Resolve to pay debts as soon as possible.
Do not let them carry over year after
year after year.
•
Pay as much as you can. Do not pay
just the minimum amount due on your
credit card statements.
•
Prioritize debts. Pay high-interest
debts first while paying the minimum
amount required on other debts. This
will lessen your overall interest
payments and shorten the period of
time it will take you to repay your
total debt.
•
Bust open your piggy bank. The holiday
debt situation can be classified as
one of the rainy days that you have
been saving for.
•
Maximize windfalls. If you have received
a raise or earned extra cash, use
them to pay off debts.
•
Don’t pay credit with credit.
Avoid obtaining loans to pay off your
credit card debts, for example.
•
Keep or lock up your credit card for
the time being to avoid using it further
and accumulating more debts. Use cash
for purchases whenever possible.
•
Go on a spending diet. Trim the budget
fat which may include limiting trips
to the mall cafe, bringing lunch instead
of eating out, or commuting to work.
•
Sell some old stuff through the Internet
or by holding a garage sale. This
is also one way of clearing up the
clutter in the New Year.
•
Go for debt restructuring. Negotiate
with banks and credit card companies
for affordable payment terms or “paylite”
schemes to help you pay off your debt.
•
It would be wise to start planning
for the next holiday season. Set up
a Christmas fund, do your shopping
the whole year round, and take advantage
of store sales. Doing so would spare
you from holiday panic and impulse
buying, overspending, and suffering
another round of financial hangover.
The
FCAG said that the best advice it
could give would be to stay positive.
Love and forgive yourself for these
“mishaps” and learn the
precious lessons that go with every
life experience.
You
may e-mail us at totingbunye2000@gmail.com.
Past
articles may be viewed at http://speakingout.ph/speakingout.php.
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