You did it again, didn’t you? You went a teensy bit over your holiday shopping budget. Your credit card bill may be a bit higher next month. How are you going to explain this one?
Foundation Credit Union can help. Read about our tips for recovering your finances after the winter holidays.
Take a Look at Your Overall Financial Picture
Examine your finances closely. What can you afford to pay? Plan out the minimum payments for all of your debts and assess how much you can pay and what can wait. Remember to focus on the necessities first, such as food, shelter, and transportation.
Make a Strategy
Do you have multiple credit cards? Consider paying the ones with higher interest rates first. Those interest rates will accrue higher payments in the future if you don’t pay them down. Or, consider making payments on credit cards with the lowest payments. That way, you’re not in the doghouse with a credit card company.
Whatever payments you choose to make, it’s important to make them on time. Foundation Credit Union offers helpful payment scheduling features in our online banking resources, so you can plan ahead to pay bills on time.
Cut Back on Unnecessary Expenses
Do you stop by your favorite coffee shop on the way to work every day? That $2 cup of coffee adds up over time. Do you go out to eat once a week? Think about eating at home instead. Use the money you save to pay down those credit card bills from holiday shopping.
Utilize Your Income Tax Return
You’ve already got plans for buying a big-ticket item with your income tax return. Not so fast. Spend your tax return wisely. Pay down some or all of your credit card debt and then determine what you can use for disposable income after that. Your monthly financial picture will be much better when you have less debt.
Save for Next Year
It’s never too early to start saving for holiday shopping. Set money aside every week or month for the winter shopping season. Consider putting $10 a week into a dedicated savings account at Foundation Credit Union. Let’s say you do this for nine months. After 39 weeks, you have $390 to spend on holiday gifts!
Financial Tips by Foundation Credit Union
Foundation Credit Union is here to help you maintain and improve your finances, even after you spent a bit too much during your Christmas shopping. Contact us online or call 417.895.2770 for more information on how our employees can assist you and your family!