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3 Reasons You Need To Pay Off Your Debts Before Christmas


Christmas is approaching real quick and I bet you wouldn’t want to get into the holidays in debt. The Christmas period is associated with increased spending and festivities. This period can be tough on the finances of so many families who are already struggling.

Reasons to pay off your debt before Christmas

Christmas is a time to connect and relax with loved ones without having to worry about debts. That makes it necessary to handle those accumulating debts now before Christmas sets in. Why do you need to get out of debt before Christmas?

  • Gives you a fresh start: starting the new year with a clean slate debt-wise gives a boost to your morale. With this new burst of energy, you can start working up those financial muscles early in the year.
  • Makes the festive period more enjoyable: the holiday is a time to make merry and relax amid family and friends. Having a mountain of debts to clear can add a dent to these moments. Approaching the holiday debt-free increases the prospect of truly enjoying Christmas.
  • Clearing your debts before Christmas increases the chances of meeting your financial goals for the coming year.

How do get out of debt before Christmas

Though clearing your debts can be quite a huge task, it is not impossible. With the right strategy and discipline, you can clear those debts in no time. But how do you begin? You may be wondering. Let’s find out.

#1. Determine the total amount you owe

The first step to clearing your debts is to find out the exact amount you owe. Getting this information will help you to know what you are up against so that you can come up with a good repayment.

Don’t ignore your debts. Ignoring those credit card debts and car loans won’t make them go away. It will rather make you sink deeper into debt. You may need to go through your records to determine the total amount you owe.

Don’t forget to add debts from different sources like credit card debts, car loans, overdrafts, as well as payday loans. Also, find out the amount of interest you are required to pay and add all these up to get a complete picture.

#2. Draw up a budget and stick to it

A budget in debt repayment is like a map to a traveler. You may never get to your destination without one. Take out time to draw a comprehensive budget showing your income from all sources. Your budget should also include all financial obligations including debt repayments.

Putting your income side by side with your expenditures in a budget helps to give you a clear picture of your financial standing. Beyond coming up with a budget, commit to sticking to the budget. A budget, no matter how good it is won’t amount to anything unless you stick to it.

#3.Prioritize your debts

Prioritizing your debts will help you tackle the most urgent and high-interest-generating debts first. The debts to prioritize may include credit card debts, payday loans, mortgages, and even car loans. It is always best to pay off debts with higher interest rates before the ones with lower interest.

#4. Cut down unnecessary expenses

Your journey towards a debt-free life will be halted if you keep accumulating more debts. You may need to look at your expenditure and cut down on what you spend on things you can do without. Try as much as you can to live within your means and avoid taking fresh loans during this period.

Final thought

Your desire to select Christmas debt-free is achievable. With a little discipline and sacrifice, you will be on your way to improving your finances