With our belts feeling tighter, and our wallets leaner, for many of us, Janu-worry starts with us managing our holiday debt hangover.
Take a breath
Post-holiday debt can be stressful, when you have no idea how you’ll make your minimum expenses, let alone repay your debts. When we’re stressed, we tend to take shallow breaths. We lose oxygen which means we don’t handle things too well. Breathing gives you oxygen to think, get creative, and solve problems by importantly giving us the time to gather our thoughts.
Take note
- Are you using credit to supplement your living expenses?
- Was spending over the holidays just the tip of the iceberg because your debts have been piling up over the past few years?
- Or perhaps you’re not even sure where your money is going each month?
Take stock
Write down:
- Your household income (after taxes)
- All your household liabilities (debts like your rent/bond, car repayments, credit cards, personal and payday loans)
- All of your monthly expenses
- Also take stock of your assets; they might provide you with options (e.g. perhaps you can sell something for some much needed additional cash)
- If you’re not sure where your money is going every month, write everything down that you spend for a few months to give you a clearer picture
Take action
- Reduce your monthly spending – bargain hunt, make your own food instead of eating out, shop around for bargains
- If you know you cannot make your payments, the worst thing is to do nothing. Reach out to your bank, a suitably qualified financial advisor or LifeAssist on 0800 22226. Don’t let fear stop you from getting help
- A debt counsellor may be suggested to help set up a debt repayment plan, build a budget, and suggest tips to make sticking to your budget easier. The counsellor can also help negotiate a reduced interest rate
It’s not necessary to feel overwhelmed. Understand your situation, get help by calling LifeAssist and let one of our financial coaches help you move forward. You’ve got this!