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Get Rid of Christmas Debts Quickly

By: Garry Crystal - Updated: 19 Oct 2012 | comments*Discuss
Christmas Debts Credit Cards Store Cards

Christmas is usually a huge expense, especially for those with families. It is vital to clear Christmas debts quickly to avoid interest rates adding to the original cost of purchases.

Christmas Credit Card Spending

Christmas is the time of the year when Credit Cards take a hammering. It is not uncommon for a great number of borrowers to be left paying back high interest credit card debts well into the next year. Added interest can significantly increase the original cost of the items purchased. Christmas debts can be a massive obstacle when it comes to clearing debts on credit cards and store cards. Clearing these debts quickly should be a priority and there are ways to eliminate them without paying large amounts of interest.

Eliminate Credit Interest on Christmas Purchases

If credit card and store card spending is unavoidable over the Christmas period then there are ways to avoid paying interest fees. Most credit and store cards will give interest free periods in which to pay off the balance without incurring interest. This period could be a month or longer depending on the lender. This is a great way to eliminate interest fees, and opening a new store card can usually bring savings with introductory discounts. Always check credit contracts to see exactly how much time is given to clear balances before interest kicks in.

Consider Using Zero Interest Credit Cards

Zero interest credit cards are another option for borrowers who are looking to eliminate interest fees. Zero interest credit cards will usually come with long term introductory interest free periods. There are actually some zero interest cards that come with 16 months interest free on spending. This means borrowers can repay the Christmas expenses over a long period of time without incurring any interest fees. Zero interest fee credit cards will usually only be available to borrowers with very good credit ratings.

Look for the Best Deals at Christmas

One way of getting rid of Christmas debts quickly is to reduce the amount actually spent. Keep an eye out for bargains, especially online. Online purchases are generally much less expensive than buying goods in the stores. Take the time to compare online shopping providers; a few hours research should bring good savings. Also look out for the pre-Christmas sales, which usually take place in November. Minimising the amount spent on credit and store cards will be one of the best ways to help the quick reduction of Christmas debts.

Increasing Earnings after the Christmas Period

For borrowers who really wish to eliminate Christmas debts quickly it may be a case of biting the bullet and increasing earnings. Taking on part time work for a few nights a week, for a few months, will reduce debt rapidly. Consider selling unwanted Christmas gifts on internet auction sites to bring in some extra income. This does not need to be a long term option. One or two months of extra work may be all that is needed to clear those Christmas debts.

Rethink Financial Budgets to Eliminate Debts

After the Christmas period is over take a look at how much has been spent on credit cards and store cards. It might be time to rethink that financial budget in order to pay off debts in less time. List all incomings and outgoings and see if there are ways to pay more towards the Christmas spending debts. This may mean a few months of cutting down on luxuries over the first few months of the year. But by doing this it should mean that these debts are still not incurring interest well into the rest of the year.

Remember to place a limit on how much to spend at Christmas. It’s very easy to get carried away with the festive spirit when shopping in stores over the Christmas period. It’s even easier to find credit cards and store cards maxed out due to over zealous spending. Work out exactly how much to spend on credit cards and stick to that budget. Don’t be tempted into thinking a few more items on top of the budget won’t make a difference. The more that is spent during Christmas the harder it will be to reduce Christmas debts quickly.

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