Holiday spending adds up fast and suddenly your credit cards are heavier than Santa after a tin of sugar cookies.
In a survey of holiday consumers, a few said they saved throughout the year to pay off holiday debt, and most said they have no firm plan in place to pay off newly-acquired Holiday debt.
If you don’t have a plan to pay off your Holiday balance, it may hinder any home buying purchase. Now is the time to plan before the Holiday Rush is here.
There are several ways you could choose to pay for the Holidays ….
– Pay it all off at once. If you can get away with moving money from savings to pay off your credit card in full, it is recommended.
– Pay it off in monthly installments. Create a monthly payment plan you can afford. Most consumers intend to will pay off their debt in one or two months; other 8.9 percent in three to six months.
– Use your tax refund. Nearly 6% plan to use their tax refund check/s to pay off their holiday debt.
– Find a card with a lower rate. If you have a high balance, you may consider looking for a card with lower rates to transfer balances to. HOWEVER, the idea is NOT to incur more debt – it is to pay it down to be manageable.
– Enroll in a holiday savings account. It may not help paying down existing debt this year, but to avoid going through this next year, start saving for the 2014 holiday season now. Set-up a monthly payroll deduction and you will have quite a bit saved up for next year’s Holiday season.
If you are thinking about buying a home in Northern Utah, you may want to contact your loan officer before you start sliding your credit card just to make sure any Holiday credit you’ll add won’t push you out of buying a home.
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