If you are just recovering from the holiday hangover and it’s just hit you that your credit card shopping debt has spiraled out of control, not to worry. Take a deep breath and follow these tips to get things back in order:
Do Your Calculations
Once you know the position of your financials, it can be easier to evaluate the best strategy to pay off your debt. Use a spreadsheet or a budgeting app to consolidate all your credit accounts.
Resist All Temptations
Holidays are over and so is the fun – well, at least for a while. As you’re working to pay off your debts, for the time being, resist all your temptations of spending any money. If you have to freeze your card or leave it at home, do so. If there are any apps on your smartphone that lead to expensive temptations, such as Groupon, delete or hide them for a while.
Prioritize Debt Payments
If you have debt on several cards, it’s best to prioritize them. The first debt you should be paying is the one with the highest interest rate. However, make sure to meet the minimum payments on others. Once your debt on one card is cleared, aim for the next.
Make Extra Cash
There is a lot that you can do to generate some extra income, which can help you pay your debt off quickly. Sell unwanted stuff around your house on eBay and return any unwanted gifts. If you can, put up a garage sale.
Cut Down Expenses
Any expenses that are eating into your budget will have to be cut down. Don’t think twice before doing it because that will only make you weak. You can live without cable for a few months and pack your own lunch for work.