Tyler , TX (KETK) — The last way you want to start the new year is by drowning in debt. Unfortunately with all of the holiday shopping and spending some people may be paying for it now. KETK spoke with a financial advisor for tips on how to avoid holiday debt, and what to do if you find yourself in it.
Jay Oliver, Rose Point Capital Advisors, believes you should be realistic and proactive, and don't ignore the debt you're in. "You're still enjoying maybe the holiday spirit and the generosity of the season but start right away so that you have time to address that get it paid off...know what you owe, know what the terms are, pay it on time, and be disciplined to pay that fixed amount each month," said Oliver.
He also suggests to talk to your credit card company to see if you can have a shorter pay off period.
"You will be paying for those Christmas purchases for many years, maybe 10 or 12 years if you only make the minimum required payment," said Oliver.
Its best to cut back on spending, if you're needing to get more cash flow. "Luxuries you may be indulging in that you don't have to have and being deliberate about that and using those funds to help pay off that debt," said Oliver. He also said its also smart to think about another source of income.
Tips to get out of holiday debt:
- Be proactive and strategize a way to get out of debt
- Talk to your credit card company about a shorter pay period, lower interest rate, and payment plan
- Make all of your payments on time
- Make a budget
- Cut back on all extra spending (ex. going out to eat every night)
- ALWAYS be mindful of your purchases