Many people living in Mississippi and around the country struggle with being able to pay off holiday debt. However, experts do have some possible options for individuals who would like to pay off their debt more efficiently.
One suggestion is to simply reduce costs. Many families set limits on how much they will spend on gifts for immediate family and agree with friends and extended family to avoid gift exchanges and instead get together at each other’s homes for holiday snacks and well wishes.
For those who do opt to purchase gifts, there are several strategies for paying off holiday credit card debt. The first is the debt snowball or its variation, the avalanche. In a debt snowball, individuals pay off their smallest credit card and then apply the money saved on that payment toward the balance of another card. This provides debtors a sense of accomplishment as debts are erased.
The debt avalanche is a different approach, which involves prioritizing debts with the highest interest rate. While this requires debtors to put off the pleasure of eliminating a debt entirely, it is often a more fiscally prudent option and costs less money over time.
Other options include taking out a personal loan at a low interest rate to pay off all credit card balances. Similarly, it may be possible to find a low-interest credit card that allows the transfer of high-interest balances. In both cases, however, consumers must be able to manage their existing finances so that they do not create an even larger debt on the new credit card.
Individuals who are concerned about money issues may be able to find debt relief through these methods or bankruptcy. An experienced attorney may be able to review a client’s case and make recommendations as to the appropriateness of a specific strategy.