Santa was not so kind to your friends and relatives this year, so you felt the need to fill the gap. You overspent on holiday gifts, and now you are stuck with a significant amount of holiday debt. Gratitude from gift recipients is a great feeling, but gratitude is not going to pay off your MasterCard bill. If it's any comfort, you're not alone; according to one report, Americans racked up an average of $1,230 in debt last holiday season.
What do you do? Start with the classic bit of advice "if you are in a hole, stop digging." Recognize that you overspent, and freeze your spending until you can take the following steps.
Be honest and open about your overspending. (You set the bar awful high this year and it may take you until next Christmas to lower expectations for your gift recipients.) With some planning and consideration, you can find gifts that are even more meaningful at better prices.
In the end, perhaps something positive will come out of your debt binge. Treat it like any other unhealthy binge deal with the aftermath, learn from it, and take steps to keep it from happening again. Read our other tips on dealing with excessive holiday debt.
If you want to reduce your interest payments and lower your debt, join MoneyTips and use our free Debt Optimizer tool.
Originally Posted at: https://www.moneytips.com/10-tips-for-dealing-with-holiday-debt-part-1
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