Many people want to start fresh at the beginning of a new year. You may have devised a list of things you want to accomplish in 2024. As a Sandwiched Generation Parent, you care for two generations: your elderly parent(s) and your child(ren). Therefore, it is essential that you properly manage your finances. If, during the holiday season, you found that you didn’t stick to the budget and overspent using your credit cards, this blog post is for you. You can take control of your spending today and follow some simple steps to paying off holiday credit card debt.
60-Day Spending Fast
During January and February, I participate in a spending fast. I only spend money on necessities: bills, food, and gas. If I have holiday credit card debt, I focus on paying off this debt during the first 60-days of the year. Ideally, I pay off the debt within the first 30 days to avoid any interest. When holiday shopping, I use a cash-back rewards credit card and any rewards I earn to pay off the credit card debt. Using this method, I have been successful in not carrying over any holiday credit card debt for no more than a few months. Fasting for my Financial Health
Pay Off the Highest Interest Rate Credit Cards First
If you cannot pay off your holiday credit card debt in 60 days, consider paying off the cards with the highest interest rate first. Using the ‘avalanche’ method is the strategy that has helped many people conquer their credit card debt. It’s all about tackling the credit card with the highest interest rate first while keeping up with the minimum payments on your other cards.
Negotiate Lowering Interest Rates with Credit Card Companies
You may not be aware, but you can negotiate with your credit card companies for a lower interest rate. Credit card companies are often willing to adjust your interest rates, especially if you have a good payment history, rather than lose your business to a competitor. A lower interest rate means less money paid in interest, and more of your money is paid towards the principal balance, ultimately paying off the credit card faster.
The worst that can happen is that they say no. So call to explain your situation honestly and emphasize your commitment to paying off your debt.
Stay Committed and Persistent
Overcoming credit card debt takes time; it takes a lot of work. It’s a journey that requires dedication and self-discipline. Do not get discouraged if your debt seems to diminish at a snail’s pace. However, staying focused and sticking firmly to your debt repayment plan is essential.
Being able to pay off one credit card balance is an accomplishment and a step towards your financial independence, getting you closer to your goal of being debt-free.
Patience is a virtue. Becoming debt-free is a process that takes time. Every payment you make, no matter how small, is progress.
So, stay persistent, keep your spirits high, and remain committed to your goal. The journey may be long, but the reward of financial freedom waiting at the end of it is worth every step. Don’t worry about it; you’re not just paying off debt but building a brighter, financially secure future for yourself.