The Money Couple Minute:
Destroy your Holiday Debt
The party is over and now the bills are rolling in. A recent poll cites that Americans spent 548 billion dollars during the holidays (Answers.com). How do you recover and get 2012 off to a great start? Here are three tips to get you and your budget back on track:
- Add it up! - This is no time to wimp out or stick your head in the sand. Pull all of your statements together and make a list. Be sure to write down the amount, minimum payment and interest rate.
- Get Strategic. - Figure out what you need to start paying off first. It is tempting to pay the lowest balance first. Resist the urge. Pay off balances that have the highest interest rate first. This will save you money in the long run!
- Work as a team! - If you are married, be sure to agree on your approach. Couples that agree on how to approach and tackle holiday debt together get their debt paid off twice as fast as couples that don't. Remember, your money personalities are going to come into play. If you are a Security Seeker or a Saver, paying off your debt will put you in your “zone”. If you are a Spender, Risk Taker or a Flyer, you are going to be less stressed out about the debt but need to be considerate of your spouse's opposite money personality and be sure to stick to the payoff plan.
Scott and Bethany Palmer
The Money Couple
Money Huddle Tip: Pull together all of your credit card bills. Get a piece of paper and list the card name, amount, minimum payment and interest rate. Put together your plan, make a commitment to each other to pay off the debt and get started.
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