The 12 Debts Of Christmas Part Two

How to Manage Money and Eliminate Debt

How to Manage Money and Eliminate Debt

Dashing through the malls

with credit card in hand

buying big and small

I don't understand

I wish I had more cash

but my credit card I'll use

I spend it in a flash

Oh, I have the holiday blues

Oh, Jingle Bells my credit smells

and I think I broke the bank

Oh, I wish I was debt free

but I have myself to thank

Oh, Jingle Bells I'm penniless

and I have some bills to pay

I still have some things to buy

what else can I say

Debt and the Christmas season don't have to be connected. I've created some tips for how to manage money in this holiday season and ways to start tackling your debt before it becomes too much.

HOLIDAY DEBT TIP 3: How to Avoid More Debt

Spend Less - In my family Christmas was a time for sharing laughter, getting together and breaking the bank. In fact we would all spend more than we should. When we realized that it was really about the companionship and not the gifts that were important and the holidays became that much better. Rather than buying one gift for each family member, we started to draw names and purchases a single present for one person and had a spending limit. Our maximum was $50 but it doesn't need to be that expensive. The thought really does count and usually a less expensive gift or a homemade gift means more to someone than a new PS3 or I-POD.

Turn Off Those Lights! - You might be in the Christmas spirit and want to show everyone how great this time of the year is, but for if you want to save money turn off those Christmas lights. Those little suckers suck so much cash out of your wallet. Try only having them on from 7 until 10 or wait until it almost Christmas before you start lighting up.

Share The Duties - Rather than preparing an whole dinner for the whole family of parents, in-laws, cousins and friends even out the responsibilities. Have your best friend Jane bring her world famous mashed potatoes, your brother in-law can bring their happy hour drink, your parents can make dessert and your crazy cousin Jake can supply the rum and egg nog. You shouldn't put the entire meal on your shoulders and on your wallet. Sharing responsibilities will help show you how to manage money and remove a lot of personal expenses.

Exchange Presents on the 29th - Prior to going out to hit the overcrowded stores perhaps you can wait. Boxing Day is the ideal time for shopping. The malls might be insane but the money you will save is almost worth that extra time and frustration.

HOLIDAY DEBT TIP 4: Start Tackling Debt Now

You must start to pay more than the minimum. Use the debt stacking approach I have mentioned in some of my earlier posts. Take care of the lowest balance first and wipe it off the map. Use whatever extra cash you have to get rid of that balance. I can't stress enough how important and how valuable a tool debt stacking can be. It's more important that you take your finances into consideration than it is to rack up even more credit card debt.

For my next post there will be another festive song for you to sing and I will give you two more ways of how to manage money and stay free from debt this holiday season!

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by: Brandon Schmid

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