As Texas readers know, the holidays are an exciting time of spending time with loved ones, going to parties and exchanging gifts. It can be an expensive time of year as well, and the financial impact can be significant, especially if you are already struggling with managing your payments. In fact, many Americans will go into debt this month.
Spending during the holiday season will likely not be the reason your financial situation spirals out of your control. However, Christmas spending could be the proverbial straw that breaks the camel's back, leaving you with even higher credit card balances you cannot pay. If you are overwhelmed by what you owe and unable to catch up, it may be prudent to consider the benefits of bankruptcy.
Fight the urge to overspend
Like many others, you may feel a certain amount of pressure to spend more money at this time of year. It is possible to fight this temptation and avoid adding too much credit card debt, and some helpful ways to accomplish this include:
- Don't overspend on hosting – If you have to host parties or overnight company during the holidays, it can be difficult to stay on budget. Food and drinks are expensive, and it can help to plan ahead, shop for deals and stay on your allotted food budget.
- Don't overspend on travel – Travel can be expensive. One way to avoid exorbitant costs is to plan ahead whenever possible. Budget for gas, the cost of plane tickets and even food along the way.
- Don't overspend on gifts – It can be quite costly to buy for everyone on your list. You can save money by making gifts yourself, baking goodies instead of buying or buying gifts in bulk to save money.
Even with planning and being intentional about your spending, you may still find yourself dealing with a significant amount of credit card debt after the holiday season is over. You may feel discouraged and overwhelmed, but there are options available to you that could allow you deal with your debt once and for all.
It is never an easy choice to move forward with bankruptcy. However, this process allows eligible consumers to discharge debt and emerge from the process to a better and more stable financial future. If you have a significant amount of credit card debt, it may be helpful to seek an evaluation of your case and get an explanation of how the process of bankruptcy could benefit you.