Indulging for the holidays and overspending is bound to happen with all the gifts, food, travel, decorations, and festive events. Unfortunately, this can mean debt accumulation for many people who have stretched their budgets to get everything they want and need.
If you're looking for ways to recover from a financial holiday hangover, we have solutions that'll help get you and your finances back into good health in no time.
5 Effective Strategies for Eliminating Holiday Debt
Overspending during the holidays can wreak havoc on your finances and potentially cause long-term consequences. This is why it's important take proactive steps to eliminate holiday debt as soon as possible.
1. Balance Transfers
High-interest credit cards can be a nightmare when it comes to paying off debt. Instead, consider transferring high-rate and high-balance credit card debt to a low rate alternative. A balance transfer when you open a Peach State Visa Credit Card allows you to reap the benefit of a 0% interest rate for purchases and balance transfers for six months.1
This means you can pay off holiday credit card debt faster because every payment you make will go towards the principal balance rather than the interest – a smart money move.
2. Consolidate Debt
Another savvy way to get rid of holiday debt is to consolidate and simplify multiple debts. There are several options for this and each has cost saving benefits.
Home Equity Loan: This is a low-interest option that is secured by the equity in your home. It offers qualified borrowers convenient access to a lump sum of funds serving as a flexible solution for paying off holiday debts.
Home Equity Line of Credit (HELOC): This option also uses a home's equity as collateral. The key difference between a HELOC and a traditional Home Equity Loan is that the HELOC doesn't disburse a lump sum. Instead, qualified borrowers can draw on the available funds to use when needed.
3. Apply the Snowball Method for Paying Off Debt
The Snowball Method is an effective repayment strategy that focuses on paying off smaller debts first. Once the lowest debt is paid in full, you apply the money that would have been used for that monthly payment to the next smallest debt payment. Continue to repeat the process until you're free from holiday debt!
4. Utilize Free Financial Counseling with BALANCE
This valuable resource is available for all Peach State members. BALANCE, is our free debt and budget financial counseling services. Members can get expert advice on how to create a personalized debt repayment plan, improve financial habits, and receive support throughout the debt-elimination journey. Get started here!
5. Budgeting and Creating a Repayment Plan
The best way to stay on track to eliminate holiday debt is to create a monthly budget and holiday debt repayment plan. A well-thought-out plan for tracking expenses and setting money aside to payoff holiday debt is a smart money move that comes with many financial rewards. Get started today by creating your smart budgeting plan and achieve your goal to become free of holiday debt!
Budgeting and managing your money has never been easier!
Download Our FREE Guide: Debt Consolidation: Expectations Vs. Reality
Download Peach State's Debt Consolidation eBook
If you're ready to gain more in-depth knowledge about debt consolidation strategies for eliminating those holiday bills, we have the perfect resource – 'Our Debt Consolidation: Expectations vs. Reality Guide'. This eBook will help you to design an effective plan for paying off all holiday debt. It explains the best debt consolidation strategies and solutions to alleviate debt while exposing unrealistic expectations about the process.
Peach State is here to help you make informed decisions about managing debt and regaining control of finances so holiday spending doesn't wreak havoc on your budget into the New Year!
1 APR – Annual Percentage Rate. The 0% introductory APR applies to purchases, cash advances and balance transfers. Offer applies to new Visa Credit Card accounts only and may expire at any time; does not apply to account upgrades. If you are upgrading from a rewards card to a non-rewards card, then your points will expire at the time of the upgrade. The 0% APR is effective for the first six statement periods following the opening of your account. The APR will return to the annual percentage rate of your approved card type after the promotional period, or if you fail to make a minimum periodic payment during the promotional period within 60 days from the due date for that payment. Rates range from 6.9% to 14.9%. A $15 application fee is charged for processing. Subject to credit approval.
