Est. 1966 · A Non-Profit Organization

In Hock After the Holidays?
Help for Your Holiday Hangover

It's the "morning after" the holiday debt binge. We open those January credit card statements and face just how bad our holiday hangover will be. We groan and hold our heads as we see in black and white just how much we overdid it, despite our plans for moderation.

We know we need more than aspirin and sleep to recover from the overspending shakes. And we know that if we don't change our spending habits, more of the same - the "hair of the dog that bit us" - is lurking in our future.

Here's how to cure that holiday hangover and vaccinate yourself against future relapses:

Pledge to avoid any further charging on credit until you have repaid all your holiday debt as quickly as possible, by paying as much as you can each month. It's far too easy to make only minimum payments and end up carrying last Christmas' balances all the way through next Christmas!
Use your New Year's resolutions to help retire that holiday tab. Did you pledge to lose weight, exercise more, give up gourmet coffees? Specifically earmark the money you save from eating out less, using less gas by walking/biking/running instead, skipping the coffee kiosk, etc., toward debt repayment.
Put gifts you received or purchases you never gave away toward paying off your balances: return those unwanted items, sell/cash in gift cards for establishments you don't frequent (there are websites that can help!), apply cash gifts and year-end bonuses to debt repayment, or even consider a garage sale, online classifieds or online auction sites for things you won't use.
Remember that many of us get a "gift" from Uncle Sam this time of year and commit to using your tax refund to pay off your holiday balances.
Try the "snowball" method. Make minimum payments on all cards except the highest interest one, and make the largest payment you possibly can on that one. Keep doing that until it's paid off, then roll that large payment into the next highest interest debt by adding it to the minimum you were already paying on that one. Keep doing this, and the snowball effect means you'll be paying down balances faster and faster!
You can also consider "snowballing" your debt onto one card with a balance transfer, but watch out for transfer fees and short-term, low-interest teaser rates. Be sure that you really save money with the transfer, and that you have the self-control not to run up the newly paid-off cards, ending up with even more debt.
Paid off that holiday debt? Great! Treat yourself to something small to celebrate, but then start planning now for the temptations of the next holiday season. Begin a savings fund as soon as you've paid off last year's obligations. It's often most effective to just do this yourself in the best savings vehicle you can find, but if a special "Christmas Club" account at your bank or credit union makes it more convenient and harder to "fall off the wagon," then go for it!
Keep your eyes open all year for great bargains and special finds to set aside. Not only will you save money by taking advantage of good deals when they are available, but you will also spend so much less when you aren't rushed and stressed about making sure you have something for everyone at the last minute.

But what if your holiday hangover is so excruciating you can't even focus enough to get out of bed? What if the sight of those credit card bills is making you nauseous? How do you start down the road to recovery?

Consider a FREE professional consultation at the non-profit Consumer Credit Counseling Service of Orange County. Our certified counselors will help you choose a remedy that's right for you, whether it's just helping you create a plan of action or putting you on a formal debt management plan.

Our impartial counselors have been helping consumers for over 45 years in the local community at no cost or obligation. They can work with your creditors on your behalf to develop a repayment plan that can lower interest rates, stop late fees and even get late accounts brought current.

Call 800-213-2227 for an appointment, and we'll help you find the cure for that holiday hangover!

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Consumer Credit Counseling Service
1920 Old Tustin Ave.
Santa Ana, CA 92705 (map)

Phone: (800) 213-2227

Fax: (714) 245-1680
E-mail: cccsoc@cccsoc.org

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