What to do when you're over spending for the holidays

What to do when you’ve overspent for the holidays

We’ve all been there dreading the credit card statement post-holiday season- Here are my sure-fire ways to keep your debt down during the holidays.

The temptation is real

The temptation of overspending during the holiday season is real. During the holidays, only one thing pops into your mind over and over again, which is the number of memories that you would make if you have a more luxurious Christmas, take a trip with your family, buy more presents for loved ones, etc. One can think of endless ways to overspend during the holidays and end up with debt at the start of the next year.

If you think you are the only one, then remember you are not alone. Almost every one of us has made the same mistakes over and again. But then again, we have the holiday spirit to blame for it. Who can say no to extra Christmas decorations, or gifts, or better meals? No one! Exactly, so we all make mistakes, but as soon as the holiday season is over and we get back to reality, the guilt and the pressure begin to sink in.

Yes, it is true, it happens – always! But you need to remind yourself that all the money spent was worth it. You had an amazing time with your loved ones, and you make memories that would last you forever. So kick the guilt out and start planning a recovery plan because if the debt has piled up on your credit cards, you definitely need to take care of it right away or at least have a plan to do so. Today, in this guide, we will be looking at ways in which you can recover from your over expenditure during the holidays. If you are reading this article before the holiday season, then we would tell you to budget property. But if you are reading it after, then these tips will help you get over your debt soon in a more accurate manner. So let us go ahead and look at them in detail.

Start Budgeting Right Away

The very first thing that you need to do is start budgeting right away. Once you realize the problem, the best approach is to nip it in the bud, not procrastinate over it for days or weeks in most cases. The day the holiday season ends, get back to your regular monthly budget. If possible, cut some costs because we all know we don’t need as many snacks as we buy every time we hit the grocery store.

Come Up With a Recovery Plan

Simply planning the payoff in your head isn’t going to help. You need to precisely develop a recovery plan once you have shifted back to your budgeting habits. It is best to be as detailed and concrete as possible. Calculate all your expenses, focus more on needs than wants, and save the money for the wants to pay off your debt for the coming few months. Write down how much money you need to pay back, put in exact amounts that you will pay back on specific dates. The more defined your recovery plan is, the more chances you are achieving your payoff goals. Remember, it is necessary and should be your top priority. You don’t want that debt to line up with all your other debts.

Add to Your Income

One of the best ways to recover from debt is to add to your income. You might be wondering how that would be possible. Well, instead of asking us, ask yourself what other side hassles you have been putting off? We are sure that you might have an answer for yourself. Yes, it might add a few extra working hours to your everyday shift, but at the same time, it will save you from interest payments and debt. No matter how small the paychecks from your side hassle are. They are still better than nothing, and you never know how much you can actually make. So give it a try and let yourself explore other possibilities to pay back your debt.

Review Your Expenditure 

Reviewing your holiday expenses should be a part of your recovery plan. You will be surprised to find out how much it can tell you about your spending habits. So get in your purse and go through all your receipts once again. You might find something that someone else purchases and still owes you money for it. Or you might find something that you need to return but forget. It might not be much, but it is still better than owing money to a financial institute.

Transfer the Balance

Lastly, you need not worry about your balance. In some cases, the debt itself isn’t the problem; the high-interest rate charged on it is. So if you have a good credit score, you should opt for a new credit card with a lower interest rate. If possible, transfer all your debt to the new credit card and save the high-interest rate you had to pay on the previous credit card.

Consolidate Your Loan

Another option, similar to transferring, is consolidating your loan. If your credit is in good shape, your local financial institute might offer you a loan with a much lower interest rate as compared to your credit cards. So take out a loan, pay back your credit card debt, and have a single monthly payment made every month.

Break The Cycle 

Overspending is never a one-time thing. Most of us overspend almost every holiday season. But it is time for you to break the cycle because it distracts you from your more important financial goals and destroys your credit score every coming year. So the best way for you to overcome your overspending habits is to budget more precisely. Lock all the credit cards in a bank locker if you have to. But next time, there should be no overspending. Writing a detailed note to yourself explaining the culprits behind the overspending habits might help prevent it in the future. Good Luck. If we can do it, so can you!

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Felicity Nicole
Felicity Nicole
Owner , She Is You
I’m Felicity Nicole, and I was born and raised in the Chicagoland area. A tomboy at heart, I can be found hair up, favorite sweatshirt on, cooking up something yummy for my family. I am remarried to a wonderful man who totally gets me (woohoo!)., It turns out God does give us second chances! I am now a stepmom to two adult children who are super beautiful and a nonstop blessing in my life. Watching my son play baseball is by far my greatest joy. I am a transformational coach and Reiki Practitioner on a mission to help women redesign their lives. This mission comes directly from my own personal experience with self-discovery. From an abusive marriage to a healthy, fulfilling relationship, through multiple careers and a lifetime of coaching the women in my own life, what I realized is that I have always had power and tenacity deep within me…I just needed to let it thrive again. My courage and determination to walk away into the unknown and redesign my own story is a shining example that where there’s a will there’s a way. On the lighter side, I like my pizza thick and layered in meat and cheese (remember, I’m from Chicago). I spent 22 years in the veterinary field, where I brought home WAY too many fur babies. And if I had one thing to bring with me to a desert island, it would be coffee.
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