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The festivities are over, decorations packed away, the relatives have left, and the last of the Christmas cake is eaten! It’s time to sit back, relax, and take a break. 

But are you one of the many now dealing with a festive debt hangover?

Yes! In the excitement, the spirit of giving and spending, you have built up a sizeable debt. An amount that may take months or even longer to pay off. It's enough to give you a throbbing headache!

Additionally, in a time of cost-of-living pressures, there is no escape from stretching the dollar, trying to do more with less! 

You are not alone! But that is no consolation! If you are struggling to make ends meet, you may be feeling overwhelmed, causing a strain on your health, wallet and often relationships.  

And with the arrival of bills, particularly those highlighting accounts outstanding, now overdue, ‘pay to avoid legal action’, it’s time to find solutions for dealing with your festive hangover. Consider these 6 Steps to Recovery 

1. Get help if needed: Feeling daunted, stressed, and 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. 

2. 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 available. 

    

3. Prioritise your payments: Make a Payment Plan. First, start by knowing how much you owe by compiling all accounts. Then arrange payments in order of what is due now, overdue or if legal action is 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.  

4. Saying 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 that, if adopted, you can apply throughout the year to help manage your money to put you on a stronger financial footing.  

5. Steps & actions: Start by reviewing your spending habits and reflecting on what led to this debt. Is it seasonal holiday overspending or is it built-up debt. Next, examine your spending behaviors and routines. This is about being more mindful every time you go to spend, knowing what you are doing, and taking responsibility for your hard-earned money. That’s a great feeling! 

6. Make it a Happy New Year by 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 about 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.