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Tips Toward a Debt Free Holiday Season
It’s the most expensive time of the year. Between food, gas, mortgage payments, heating bills and buying warm clothes for growing children, Americans are always stretched to their limits around the holidays. But this winter, the average household is projected to spend $1,182 on oil alone, up 19.8 percent from last year, according to the Department of Energy’s Energy Information Administration. As costs increase, many have been turning to their credit cards to stay afloat, racking up the highest total American credit card debt ever recorded. Experts say that the economic slowdown is likely to curb overall holiday retail sales this year, as families are forced to spend more on the essentials and pulling themselves out of debt. GovBenefits.gov knows times are tough, so here are a few helpful tips to get you on the road to becoming debt free.
Create a realistic budget for your monthly expenses.
Track your spending patterns -- how much you make and how much you spend each month – and make it easier to trim costs.
Manage your credit card payments.
Pay off all credit card balances to below 50 percent of the card limit and pay more than the minimum if you can. Focus on paying off the card with the highest interest rate. Then move to the card with the next highest rate and so on.
Contact your creditors and try to work out repayment plans.
Talk to your creditors. Explain your financial situation and try to set up a reduced payment plan. You may be able to avoid having your accounts turned over to a debt collector.
Take advantage of Federal government loans.
Visit GovLoans.gov today. You may be able to use government loans to lower your interest rates and get your debts under control. The following loans are just a sampling:
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