The Post-Holiday Budget Recovery Guide

The Post-Holiday Budget Recovery Guide

The holidays are over, and if you've gone over budget, it's time to deal with the aftermath. Instead of living in a financial deficit, take steps to repair your budget as soon as the last guest leaves. Here's how you can get your budget back on track for the new year

1. Review your holiday spending. How much debt did the holiday season spending set you back? Spend some time crunching the numbers to better understand what kind of recovery steps you need to take.
2. Choose your recovery process. If you've got multiple credit card balances to pay off, consider consolidating your debt by taking out a debt consolidation loan with Community Resource Credit Union and using the funds to pay off your credit card debt. Then, you'll have a single, low-interest payment each month.

Another option is to pay off one credit card bill at a time, maximizing payments on the bill with the highest balance, or the one with the highest interest rate, until it's completely paid off. Then, once you've crossed one debt off your list, move on to the next until you’re debt-free.
3. Trim your budget. It’s time to cut that budget down to size! Consider underused subscriptions you can drop, inflated grocery bills you can trim, and auto insurance policies that can be changed for a cheaper plan. The more you trim, the more money you'll free up for paying down debt..

4. Put your holiday resources to work. Along with a pile of debt, the holiday season may have left you with some extra cash through work bonuses, tax returns, and gift money. Put these resources to work by using a portion of this money or all of it toward paying down your holiday debt.

5. Go on a shopping detox. Take a break from the mall this month and resolve to swipe the plastic only for essentials. At the very least, keep impulse purchases to a minimum until your budget recovers.

6. Make a plan for next year’s holiday season. When you open a Christmas Club Account at Community Resource Credit Union, you can set up an automatic monthly transfer from your payroll or checking account to feed your holiday savings all year.