This is the time of the year when a lot of people who overspent during the holidays really start to feel the stress.
Many are starting to get calls from collection agencies or financial institutions looking for the owed money.
John Eisner, president and CEO of SolveYourDebts.com, said if your credit is in good order, reach out to your bank for a consolidation loan.
“The best tool, I think, is a personal line of credit because that’s usually the best interest rate being offered. It’s easier to handle one payment versus several,” Eisner said in an interview.
If you are already in trouble financially, Eisner suggested contacting a counselling agency like his to look at a debt management program.
He said the best way to avoid holiday overspending in the first place is to set money aside over the course of the year.
“It’s very important leading into next Christmas that people know approximately how much they spent. Budgeting is the key to everyone’s financial success,” he said.
“For example, if your holiday costs are $1,841 – the same as the average Canadian consumer – you would need to put aside just $150 a month for the entire year to be able to buy everything you budgeted for.”
Eisner said you should create a list of everyone you want to buy gifts for, determine what you can afford to spend and be prepared to adjust your budget if needed.
He said his not-for-profit credit counselling agency has a wide range of tools available to help people live within their means.
You can find more details by clicking here.
Follow
