It’s mid-December already! With one week to go before Christmas, festive fun and Christmas cheer are in full swing. And so is holiday spending…! According to LendingTree, an online lending platform, one in three American adults takes on debt every year to pay for holiday expenses. While holiday bills aren’t surprising around this time of year, the total amount might very well be and can even affect the following year.
Easy Moves to Tackle Holiday Bills
If you’re spending more than you thought you would this holiday season, your bills don’t have to necessarily lead to debt. Here are four quick and easy solutions to paying down your holiday bills:
Apply cash back rewards as a statement credit
Responsible credit card use can give you access to some awesome benefits, including rewards credit cards. I recommend purchasing all of your gifts and other holiday-related items with a relevant rewards credit card. One way to quickly pay off your holiday bills is to use a cash back rewards credit card to redeem cash back and apply it to your statement as a credit. Depending on how much cash back you earn, you might even be able to pay off your statement entirely!
Sell what you don’t need
Have you ever received duplicate or unwanted gifts? Rather than return them for a store credit or gift card, consider selling them on Poshmark, eBay, or even locally through Nextdoor or Facebook Marketplace. Though I have sold locally before, I much prefer the online platforms for ease and convenience. Making a little extra cash can go a long way toward paying down what’s due.
Leverage extra income
If you received a Christmas bonus or if you know you will be receiving a tax refund, then allocate some of these extra funds to pay off some bills. Of course, it’s fun to think about the different ways to spend this money, which is why I recommend dividing it up into different categories. Though, if you’re extremely disciplined and would rather put all of the extra income toward your bills, then by all means, have at it!
Open a balance transfer card
My final recommendation for this post is for those who are particularly disciplined. A balance transfer credit card can help alleviate the pressure of financial stress. Instead of facing multiple payments and high interest rates, you could open a balance transfer credit card. This type of card allows you to move debt from one account to another. They often offer a promotional 0% APR for a specified period of time, though most come with a balance transfer fee between 2% and 5% of the total transfer amount.
Balance transfer credit cards are not suited for everyone. Typically speaking, you must have a good to excellent credit rating to qualify.
The Holiday Spirit
Get in the holiday spirit and enjoy the festivities without the stress of holiday bills. Implementing a mindful budget can help you curb overspending. However, should you find yourself splurging more than you planned, don’t forget that there are simple ways to recoup the costs and bounce back! Stay safe, savvy, and resourceful 🙂
We wish you a Merry Christmas and Happy Holidays!