The third Monday of January is often considered to be the most depressing day of the year. In fact people feel so down that the day is referred to as “Blue Monday.” A lot of it has to do with the excitement of the holiday season being over and everyone getting back to the grind. Also shorter days means less daylight, and less vitamin D can affect people’s mood. But it also has a lot to do with our financial situation.
This is the week the credit card bills for your December purchases arrive. If you spent way too much this past holiday season, you may be feeling especially blue this week. But there are steps you can take to feel better.
It’s time to get real about how much debt you are in. This includes the debt you’re carrying from before the holidays. First, sit down and calculate that big number. Then figure out how much disposable income you have every month to put towards debt. If you divide your monthly free cash with your total debt you will get how many months (realistically) it will take to pay that debt off.
Pay down first the debt charging the highest interest rate. Do this while still making the minimum payments on the rest. If you’re looking for ways to lower your payments overall, try using a lower interest loan to pay down your credit card debt immediately. If you’re overwhelmed with the amount of high interest debt you have, think of talking to a credit counsellor to consolidate your debt.
We get a lot for gifts at Christmas that we have no intention of using. Return what you can for cash and gift cards. Sell anything else in the online classifieds sites or on a Facebook buy and sell group. Use any cash you raise to pay your debt. Save gift cards for next Christmas to ease your shopping costs. It sounds ungrateful, but it’s better than letting that present sit idle in your closet for years.
It should be obvious, but until your consumer debt is under control you have no right to hit the mall. While you’re paying your debt off, only buy what you need: food, essential clothing etc. This is not the time to splurge on a new spring wardrobe.
We all remember what it was like to make things happen on a small amount of money when we were students, go back to that thinking. Find free entertainment, stay in and cook, enjoy some quite time after the hectic holidays. Leave the car at home and bike where you can or take the bus.
Take advantage of all the free stuff in your own home. Cook meals with food that you already have and be creative; lots of sites give you great ideas of what you can make by plugging in the ingredients – no matter how bizarre. Go for a run, walk get active and feel better about your body without spending any money. This is not the time to sign up for a gym membership, no matter how good the deal is.
Create a visual reminder for next year, by taking a photocopy of your January credit card and packing it on top of your decorations. That means next year when you open up the box of Christmas decorations the first thing you will see is this bill. That will put into perspective how much damage you can do in a short amount of time. It can help you stay on budget – hopefully - for the holiday season in 2017.
RELATED: 
Printer-friendly version