How to deal with holiday credit card debt

[brightcove video_id=”6056487929001″ account_id=”6015698167001″ player_id=”lYro6suIR”] The flurry of gift-shopping and overspending is finally over, leaving plenty of people with the dreaded holiday hangover. Just a couple weeks ago, a CIBC poll showed that Canadians were planning to spend nearly $600 for this season’s holiday shopping. While that figure is about 8% less than last year, more than half of respondents expected to go over budget. So, if you’re finding yourself with a high credit card bill this January, don’t worry. If you’re diligent, there are ways to slowly and surely combat your debt. First, figure out how much money you can actually spare towards your debt. Don’t use all your spare money to put towards debt, otherwise you might have to borrow again to pay for your daily expenses, which is more than a little counterintuitive. If the dues have really piled up—not only with your holiday credit card use, but with personal loans, too—you might want to consider consolidating your debts. You could get a consolidation loan, take on a secured or unsecured line of credit or refinance your home. But whether you’ve decided to consolidate or not, consider one of two methods of debt repayment also known as debt-stacking or debt-snowball. The debt stacking method asks you to list all of your debts in descending order from highest interest rate first down. This strategy requires you to make minimum payments on all of your debts while directing the remainder of your funds towards the loan with the highest interest rate. The longer you stick with this one, the more it pays off. The debt-snowball strategy asks you to focus on paying your debts from smallest amount to highest by making minimum payments on all your debt and putting the remainder towards the one with the lowest amount. Not only will you make some progress with all your debts, but you’ll likely clear up that holiday bill faster because you’ll see smaller debts disappear quickly, which will be a great feeling. At the same time, make sure that while you’re killing your debt you also stop using your credit card! Incurring new debt will only make everything worse. (Plus, avoid these other debt mistakes.) You can do it! Even if you’re starting 2017 with some debt, having a strategy will help you feel like you’re on the right path.

Comments Cancel reply

A car steering wheel and a bowl of pasta, as symbols of how to get the best auto loan interest rate.

loans

Car loan interest rates: What’s the best Canadians can get?

Car loan interest rates can be as confusing as a complicated recipe, and just as daunting to navigate. This...

Car loan interest rates: What’s the best Canadians can get?

Newcomer to Canada buying their first car at the dealership asking questions of the sales person about getting a car loan.

Newcomers to Canada

Auto loans for newcomers—questions to ask when buying your first car in Canada

Buying your first car in Canada is like any other major purchase. Ask a lot of questions, not just...

Auto loans for newcomers—questions to ask when buying your first car in Canada

News

Can Santander take on Canada’s Big Six? Why the global bank may face hurdles

A fresh international challenger has the potential to add competition to the country’s banking oligopoly, though experts warn it...

Can Santander take on Canada’s Big Six? Why the global bank may face hurdles

Canadian woman buying a car, as she learns to manage her money.

loans

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Learn how to manage your money, understand your earnings, invest wisely and more, from this excerpt of Personal Finance...

Personal Finance For Canadians For Dummies excerpt: How to manage money and stop overspending

Investing

Making sense of the markets this week: December 15, 2024

Bank of Canada makes a big cut, U.S. inflation is up, Oracle ends a great year on a low...

Making sense of the markets this week: December 15, 2024

Mortgages

Making sense of the Bank of Canada interest rate decision on December 11, 2024

Created By

Ratehub.ca

Making sense of the Bank of Canada interest rate decision on December 11, 2024

loans

Secured loans vs. unsecured personal loans: Which should Canadians get?

Before taking out a loan, learn the differences between these two types, which has better interest rates, and which...

Secured loans vs. unsecured personal loans: Which should Canadians get?

Investing

Making sense of the markets this week: December 8, 2024

Canada bank earnings remain on target, Dollarama’s expectations catch up to it, “insider selling” sets a new record, and...

Making sense of the markets this week: December 8, 2024

Investing

Making sense of the markets this week: December 1, 2024

Back into the tariff hurricane, Couche-Tard pumps profits, Macy’s loses $130 million, and is there too much optimism about...

Making sense of the markets this week: December 1, 2024

loans

How to buy a car in Canada and get the best loan rate

Buying a car is a big deal. Understand the financial part of the purchase and, hopefully, save yourself some...

How to buy a car in Canada and get the best loan rate