Hangover

Tis the season to be jolly’, and ‘it's the most wonderful time of the year’! 

Yes, it is!  

But after the festive celebrations, if you have overindulged, you now might be singing a different tune.  With the ease of buy today, pay later, choose, click, collect, are you humming ‘Singing the Blues’! 

If that’s you, you won't be alone. Many Australians are reported as facing Christmas holiday debt that can take months, years to pay off.  

With the magic of Christmas spirit it’s easy to be caught up in the euphoria and excitement of festivities and with the joy of giving gifts we get carried away. Tapping a credit card or taking up bargain offers too good to refuse, along with celebrations, parties and outings that all have a cost. 

Yes, unfortunately, spending overindulgence does come at a price! It all adds up to a debt hangover. Sound familiar? You find yourself struggling to make ends meet, and it’s overwhelming, causing strain on your health, wallet and often relationships.  

With the arrival of bills, particularly those highlighting accounts outstanding, now due, ‘pay to avoid legal action’ it’s time to find solutions for dealing with your Debt hangover.  

And in a time of cost-of-living pressures getting on top of your finances is a positive step forward.  Consider the following;   

Here are 5 tips to guide you. 

  1. Get help if needed: Feeling overwhelmed, need advice, contact a professional financial advisor. They have the expertise to guide and support you. Don’t wait until Debt collectors are knocking on your door. 
  1. Consolidate your debts: if you are juggling multiple accounts, debts, consolidation may be an option. For example, with several credit cards there might be the opportunity to move balances into one. Speak with your providers to see what deals are on offer. 
  1. Prioritise your payments: Make a Payment Plan. Arrange payments in order of what is due now, overdue or if legal action threatened. Asap contact your creditors, don't throw unpaid bills in the rubbish, that doesn't solve it! Consider debt payoff options, and automatic payments.  
  1. Say Goodbye to Festive Debt: this requires commitment, focus and mindset to changing habits. Doing things differently to trim down on spending. It’s not easy but there are steps if adopted you can apply throughout the year to better help manage your money and avoid running into the same problem again. Start by reviewing your spending habits, reflect on what led to this debt. Is it seasonal holiday overspending or is it built up debt. Next, examine your spending behaviors and routine? This is about being more mindful every time you go to spend, knowing what you are doing, taking responsibility for your hard-earned money. Being in control, that's a great feeling! 
  1. Make it a Happy New Year by taking steps to better managing your money. Create a Budget. Be accountable for everything, keep a record of all transactions, as that helps track spending. Think before you swipe or open your wallet, ask yourself, is the item a need or want! It’s going back to money basics. This can be challenging and if you need help to turn your finances around, don’t delay, seek professional budgeting services if needed.