Traveling during the Christmas break can leave you with a hefty pile of seasonal debt, heading into the new year. Although it’s expensive, the cost of travel is not the only financial hurdle Britons face during the festive season. Even if you don’t go abroad, staying in the home country for family celebrations can still results in high holiday spending.
Christmas presents, festive events, and other holiday indulgences come with a price attached, usually exceeding the amount of cash on hand. As a result, you’re not alone if the early months of the new year are traditionally spent reconciling holiday debt. Unless you’re fortunate enough to pay as you go, you may have your hands full this January, looking for ways to settle holiday accounts.
When the holiday revelry dies down, and seasonal spending comes due, you may be able to find the funds you need, exploring these places to find money for your holiday bills.
Bank loans serve various functions, from mortgage funding to money for cars. You can also use loan proceeds to catch-up, clearing your seasonal holiday debt. Applying in person isn’t always possible, so online lenders have established convenient borrowing alternatives, enabling you to source the cash you need, without leaving the comfort of home. Even with a history of bad credit, you may be eligible for fast funding found online.
Using Readies resources, it’s possible to review various borrowing alternatives, before making commitments. After evaluating the terms offered by multiple providers, it’s easy to start the application process online. Once approved, financing isn’t restricted, so you can use the money to settle holiday debts or ease cash flow problems caused by seasonal spending spikes. Your paycheck serves as a guarantee, so lenders expect timely repayment, once it arrives.
Cash Back and Loyalty Offers
Retailers face strong competition, particularly during the holiday sales crush. As a result, sellers devise offers and incentives, designed to lure buyers. Taking advantage of their competitive generosity is one way to ease the impact of post-holiday debt.
From buying your Boxing Day presents through cash back websites, to earning loyalty discounts at the supermarket, it takes a proactive approach to make the most of holiday promotions and sales incentives.
Rainy Day Savings
If you don’t have money set aside for emergencies, it’s too late for this year’s holiday clean-up. But if you want to avoid charging all your holiday expenses to credit cards next year, a household contingency fund may provide the temporary resources you need, making time for your earnings to catch-up with your Christmas season spending.
Financial planners recommend putting by at least enough reserves to cover your customary spending for a six-month period. Though many think of a rainy day fund as an emergency account, tapping the resource for holiday bill payments isn’t a bad use of the money; you’ll save on interest payments and can replace the emergency reserves by buckling down in the new year.
Household Spending Budget
If your cash flow patterns are similar to many other UK households, the holiday spending season represents an extraordinary period each year, when financial outlays increase, beyond what you’d typically spend. Britons facing year-round shortfalls may have a bigger problem than seasonal spending spikes.
As long as you’re dealing with a short-term problem, wiping holiday debt, it may be possible to find enough extra money, by trimming your household expenses. Try these simple strategies to cut costs and generate holiday debt payments:
- January spending freeze – After a brisk social season, you’re probably ready for a break. Scaling back nights out and other social spending is a good way to conserve cash for paying holiday bills.
- Turn down the heat – Dropping your thermostat setting a couple degrees reduces energy use and lowers your bill.
- Eat from your cupboards and freezer – Holiday spending often includes substantial sums at the supermarket. To offset the high cost of holiday entertaining, try to limit grocery spending during the early part of the year. Rather than running out for more food, create meals from items you’ve already paid for, found in your freezer and pantry.
Return Unwanted Presents
Under most circumstances, returning presents for cash makes more sense than holding on to unwanted items. You don’t want to offend generous gift givers in the process, but returning things you won’t wear or use is a good way to raise money for holiday bills.
Excess seasonal spending can haunt you for months. If you overdid it again this year and need to “find” some cash to pay for the holidays, these 5 sources of relief can help you catch up on seasonal bill payments.