How to get rid of holiday credit card debt

You may still be recovering from Christmas festivities,
whether eating and drinking less or getting to the gym. But how is your credit
card balance?

Finder.com.au analysed data from the Reserve Bank of
Australia (RBA) and found that Australians have an average of $1,863 in holiday
credit card debt. And a year from now, 27 per cent of Aussies will still be
paying off debt from Christmas 2018. Across the country, almost $30 billion was
put on credit cards this holiday season.

Before you start running for the hills, let’s take a look at
some saving strategies that will help you pay off your holiday financial
hangover.

1. Set up a budget

Easier said than done, right? But if you’ve never attempted
to set up a strict budget for yourself, it’s time to start. First, take a look
at your spending habits. Review your bank statements from the past month, and
analyse your cash flow.

Think about things you can cut out or at least reduce. Once
you understand where most of your spending is happening, you can start to
reorganise what you’re buying. You may rethink purchasing every item that
catches your eye.

2. Get food costs
under control

Eating at restaurants is a big expense that’s easy to turn
around. Make a plan to grocery shop every week so you won’t be tempted to go
out for dinner. Bring your lunch to work. Make coffee at home instead of
stopping at the cafe on your commute.

If one of your biggest joys in life is going to cafes and
restaurants, give yourself a day or two each month when you can still enjoy
these outlets. Just don’t do it all the time, and you can save hundreds of
dollars a month.

3. Cut back on
luxuries

Hard workers like to play hard, too. But if you have
hundreds of dollars left to pay off on your credit card, it’s time to cut back
on luxuries for a while.

Instead of getting bi-weekly manicures, treat yourself to
one every couple of months. Don’t pay for the most expensive yoga class. Buy
the cheaper bottle of wine.

Also take a look at all the subscriptions you’re paying for.
Whether audio or video streaming services or online newspapers, make sure
you’re actually using those services. Ten bucks a month may seem small, but
over a year you could put that $120 toward your debt.

Once you start to cut back, you’ll be on the road to debt
freedom in no time.

Get in touch with our team at Finsure for more budgeting
tips and tricks.