Believe it or not, the holidays are fast approaching. Before you know it, you will have a list of things to buy, parties to attend and holiday baking to do. Part of the holiday season is buying gifts, and for many people, this means overspending. If you are like most people in Tennessee, you will use your credit card for this.
Consumers often use their credit cards for holiday spending, daily needs and even as sort of an emergency fund. Many people carry balances from one month to the next, and in some cases, these balances can quickly grow out of control. Accumulating interest, minimum payments and other circumstances can lead to a precarious financial situation and more credit card debt than a consumer may be able to handle on his or her own.
Looking ahead
Even if you already have credit card debt, there are things you can do to now to make sure that you don’t end up in over your head a few months down the road. Some of the things to consider include the following:
- You can start now to pay down your existing balances. If you have credit card debt, start paying a little more each month. This can help you get ahead of holiday spending before the season arrives.
- Consider transferring your balances to a different card that has a lower interest rate. This will save you money, and it can make it more likely that you will be able to pay down the balance.
- Readjusting your budget now can help you avoid unnecessary and extravagant spending down the road. Go ahead and make a list, and start setting aside money so that you don’t have to put so much on a card.
Holiday spending can affect you far beyond the holidays. Well after Christmas is over, you may find yourself with credit card debt hanging over your head. Thankfully, planning ahead can help you avoid this problem.
Getting out of trouble
Even with planning and preparation, you may find yourself overwhelmed by credit card debt and unable to manage it on your own at some point. One way you can deal with this problem once and for all is to file for consumer bankruptcy. This process allows you to discharge certain balances, eventually emerging into a stronger, better financial future. If you think this could be a smart step for you, speaking with an attorney can help you understand where to start.
