The 12 Debts of Christmas Part Three

Holiday Debt - How to Manage Money

I just spent my next months wages

Fa-la-la-la-la, la-la-la-la

And this spending feels contagious

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I just bought a diamond necklace

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I think that my spending's reckless

Fa-la-la-la-la, la-la-la-la.

My credit cards are at their limit

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All my gifts should have been hand knit

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Now at least I have a reason

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To be sad this Christmas season

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16 days until Christmas. The nights are getting cooler, the days shorter and I bet your wallet is bulging with receipts. Now is when you should do something to stay ahead of the game. You don't need to break the bank this year and here are a few tips that will teach you how to manage money and stay debt free when the credit card statement comes this January.

HOLIDAY DEBT TIP 5: Combine Your Balances

You might have 3 or 4 different credit cards with unpaid balances. It's time to combine those into one. Before you head out to the shopping centers with a bulky wallet in toe, look for one 'low interest rate balance transfer credit card'. When you find the best one for you move all of the balances onto the one credit card. Chances are, making one monthly payment on one single credit card will be far more productive than attempting to pay many balances off of multiple cards.

If you can't locate a 'low interest rate balance transfer credit card' then it's time to find another approach. Snowballing your debt (now that's Christmas irony) or Debt Stacking. In short, Snowballing or debt stacking is a way to make a single large payment to one credit card while you make the minimum payments on your other credit cards. When you've paid off the 1st card take that total amount and add it to another credit card. Continue with the same process until all of your credit cards have been paid off. This only works if you don't add more debt. You won't notice any progress until the new year but I can promise that it does work and is a terrific way to learn how to manage money.

HOLIDAY DEBT TIP 6: Buy in Bulk

Now, more than any other time of the year is ideal for bulk purchases. You may spend slightly more, but it will make next month easy for shopping. Buy everything on sale and in bulk. Every grocery store wants your business and put out the best flyers in December. Spend a few hours shopping around for amazing deals. There are also endless mountains of coupons and deals you can find online to help lessen the cost. Those coupons can be anything from chocolate, to steals on DVD's and even shoes. Set aside a a couple of minutes each day to locate these deals. Every dollar you save is worth it. The holidays can be incredibly expensive because everyone tends to spend more than we had hoped but if you find the deals you can ease how much you will spend.

In my next post there is a fun filled carol you can sing with family and friends and there will be a couple more tips on how to manage money and remain free from debt this holiday season!

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