Unable To Pay Holiday Debt? What Are Your Next Options?

Unable To Pay Holiday Debt?

Most people love the holidays. They’re a time to meet up with family members you haven’t seen in a while, enjoy some tasty meals, and exchange gifts. And there aren’t many experiences that compare to a family holiday extravaganza.

What’s undeniable, though, is that the holidays can get expensive in a hurry. If you spent more than you planned over the holidays, and you’re having a hard time paying off your debt, you might not be sure what to do. You can start by using a payoff calculator to help you determine how long it will take to pay off the holiday debt. Then, consider the options below to tackle it fast.

1. Balance Transfer Cards

If you’ve taken on some holiday debt that you’re not able to pay off as fast as you’d like, you might be tempted to look into balance transfer credit cards. These cards entice you to open an account with them because you can make a balance transfer from another card and pay zero interest.

This can be a viable option for you, but only if you have a solid credit score. Credit card companies are liable to offer you such a deal if you have a history of paying off debt expediently.

These companies will usually give you a period of between 6 and 18 months where they will charge you zero interest on your balance. If you have good credit and decide to look into such an offer, it can give you extra time to pay off your holiday debt without the interest on it piling up.

A caveat to keep in mind is that you need to pay off the debt within the promotional window to avoid being hit with a big interest charge. Additionally, you can only do this a couple of times. You can’t keep transferring balances between cards forever. If you do, you’ll end up with far more open credit card accounts than you want and your credit score will take a hit.

2. Debt Consolidation

You might also consider debt consolidation if you went a little overboard with last year’s holiday spending. This technique lets you combine multiple debts into a single loan with one monthly payment. You can contact a debt consolidation company about this option if you’re interested.

If you have several outstanding credit card bills, combining them into one should make your debt easier to manage. It can also lower your overall interest rate, saving you money in the long run.

Like the zero-balance credit card strategy, though, you’ll probably only have a realistic shot at debt consolidation if you have at least decent credit.

3. Make Extra Money

Trying to find a way to make extra money to pay off your holiday debts is often a viable option for those who don’t have the best credit. You can get creative and probably come up with some ways to earn some money on the side.

For instance, you might make extra money babysitting or dog walking. Or you might pick up a couple of shifts per week driving for Lyft or Uber. If you have high-end clothes you don’t wear much anymore, you can list and sell them through eBay, Poshmark, or other online marketplaces.

The extra money you make should put you on the right path toward paying off that holiday debt faster.

Paying Off Your Holiday Debt is Possible

If you’re determined, you should be able to find a way to pay off your debt before the holidays roll around again. Making money through a side hustle is one option. You can also check out some balance transfer credit cards or debt consolidation if your credit is good enough to make those realistic options.

Paying off your holiday debt is within your power if you look into these possibilities and go with the one that makes sense based on your situation. 

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About the Author: Barry Lachey

Barry Lachey is a Professional Editor at Zobuz. Previously He has also worked for Moxly Sports and Network Resources "Joe Joe." he is a graduate of the Kings College at the University of Thames Valley London. You can reach Barry via email or by phone.