Three Ways To Put Holiday Debt Behind You

While you should always make minimum payments on all your credit card bills, try focusing on paying off cards that have the highest interest first. That's because those cards are the ones draining your wallet the fastest. Also, consider paying more on the high-interest debts; you'll eventually pay off the loan faster and pay less in interest. Consider a consolidation loan if you want to simplify and combine your debt into one monthly payment.

Purge Your Closet.
One great way to let go of holiday debt is to make extra money by selling items from your own closet. Go through your family's closets and pull out things that no longer fit, that you no longer wear, or that your kids no longer play with. Sell these items back to local consignment stores, like Once Upon a Child, for some fast cash that can go toward your debts. Also, consider taking back any duplicate Christmas gifts you received or know you won't use.

Live Without Your Raise.
Many employees receive a cost of living raise or a bonus at the end of the year. If you fit into this category, have you thought about trying to live without that raise or bonus? Instead, put your entire bonus towards your debts or every time you get paid, take the extra 2% - 4% and use it on your high-interest payments. For example, if your bi-monthly income went up $40, then add $80 extra to your payments each month. This will help you pay down your debt and keep your urge to splurge at bay. Remember: Just because you received a raise doesn't mean you should live beyond your means.