For many people, Christmas shopping is important as well as the holidays will never be complete without spending. Before the year ends, ask yourself, “Will you be stress-free come 2012 or will you find yourself stuck in deep holiday debt that would be tough to get out of? “In case, you do see that you are stuck in debt, be sure to take action immediately and never delay repaying your Christmas debt.
On this post, we present practical useful information on tips on how to become debt free at the soonest time possible.
Check your report.
As a consumer, you have the right to request for a free copy of your credit report from each of the three major credit bureaus. You can exercise this right at the start of 2012 especially if you used credit cards to shop. Thus, you can check the status of all your accounts and make sure that the charges are correct.
In case you find errors or incorrect charges in one of your accounts, you can call up the issuer involved to dispute the charges. You can also send a dispute letter to the bureau that issued your report. Upon receiving your letter, the bureau will conduct its own investigation which can take up to 30 days. If your dispute is valid, the corrections will be made and you will receive an updated copy of your credit report for free.
Pay off the balance on your highest rate card in full.
If you own multiple credit cards, check which one of your accounts carries the highest interest rate. If you can, pay off your full balance on this account immediately to stop your debts from further accumulating. You can also completely pay down the credit card with the lowest balance.
Consolidate credit card debt. One way to make repayment easier is to transfer balances from a high rate credit card to a card with a low APR. You can also apply for a new credit card that offers 0% balance transfer rate. Thus, you can focus on paying off your original debt without incurring additional interest rate charges.
However, this strategy should be done with caution. For instance, before signing up for a new card with 0% balance transfer APR, you need to make sure that you will have sufficient time to completely pay off all the charges you transferred. You should also check the regular interest rate when the introductory period ends. Some cards with 0% balance transfer rate may impose expensive fees which can prove to be a burden so you need to be smart when acquiring a new credit card.
Minimize your spending.
Do you follow a monthly budget plan or spending plan? If yes, you might need to restructure this plan at the beginning of 2012 so you can focus on the most important task at hand- paying off your Christmas debt.
Aside from cutting back on your personal spending, avoid incurring new charges which can make debt repayment difficult. Avoid using your credit card to buy things that are not important or for paying bills if you can pay with cash.
