During the holiday season, it can feel that spending through any source necessary, from credit cards or loans, is obligatory. We may feel that we cannot escape the pressure to buy more: buying gifts and food is a way that we show our family that we care. While material possessions can be an expression of love, we often spend to the excess, which can have hugely negative implications.
If you are building up debt because you want to buy your children everything they want for the holidays, you may want to question whether this is the most loving choice. Getting into huge amounts of debt could lead to stress in the family and perhaps even foreclosure proceedings, none of which will be good for your children. The following are some ways to start freeing yourself from your accumulating debts.
Separate what you want from what you need
We may think that we need that new car, handbag or piece of furniture, but when in debt, it’s important to be frugal. Start by making a list of things that you need to pay for. This could include rent, bills, and food. You may be surprised at how short the list is.
Pay off the debt with the highest interest rate first
When budgeting, you may realize that you have income left over each month. You should use this to start paying back the debt with the highest interest rate first.
If you believe that your debts are simply too problematic to tackle with a budget, you may want to consider bankruptcy.
Filing for bankruptcy could help you to have a large portion of your debts cleared. If you are interested in filing, you should start by learning about your eligibility.