It happened again. Christmas has come and gone and only now are you starting to realise just how much you spend. While you were shopping it only seemed like a couple of presents here and there, but your bank balance doesn’t quite agree. If you’re one of the people caught up in this kind of dilemma, here are some tips on how you can recover from a Christmas of over-spending.
Get rid of your junk
Everyone has bits and bobs that they’ve been wanting to get rid of but haven’t managed to do so. After Christmas is the perfect time to pull your socks up and get it done. It’s time to sell all of that old junk and make a dent in your debts. Auction sites are a great place to start. Research the usual cost of the items you’re selling so you don’t sell it for too low or price it too high and put people off of bidding.
Earn more, spend less
It may seem like the most obvious as well as the most difficult way of getting out of debt, but it’s still one of the most effective methods. If your work pays you for overtime or you work freelance, take on a little bit of extra work regularly. Don’t overwork yourself and drop to the floor with exhaustion. A little bit here and there throughout the next month will bit a chunk out of your debt, and this is especially effective when you combine it with cutting down your spending. Start bringing homemade lunches to work, choose not to go partying on the weekend, and resist the temptation of all of those little luxuries that you normally buy.
Beware of your bank cards
If you have a debit card you should read your contract carefully when it comes to your overdraft. Some banks might fine you for overspending. Entering or exceeding your overdraft might result in daily fines or overall fines of £100 and up. To avoid this, keep track of your spending and get out of your overdraft as soon as you can if you’ve already overspent. Although it might not be an option for everyone, a small loan can either help you get out of your overdraft or keep you on top of your bills to avoid going over your debit card limit. Flexible cash loans are an option if you’re close to payday and you’re capable of paying the loan off quickly. On the other hand, if you own a credit card, it might be a good option to leave it at home until you’re on top of your finances. You might be tempted to use it to pay off your bills r debts, but a credit card will only delay the inevitable.
Keep an eye on your money
By regularly checking your spending and saving you’ll start to become more aware of what you’re spending and where your money could be saved. Online banking and apps are always a great way to make sure you always know how much you have available. The next time you think about making a luxury purchase, all you have to do is whip out your phone and check your app to see if you can afford it.
It might be a good idea to set yourself a maximum Christmas budget next year. Instead of spending your entire December paycheque on Christmas presents, start putting aside money for Christmas earlier in the year. That way you won’t be short-changing yourself when January comes around.