Recovering From The Holiday Hungover

#creditcards #debt #debthungover #expenses #holidays #regrets #spending Jan 25, 2018

Did the holidays leave you with a debt hungover?

Are you regretting spending all that money on buying all those gifts? Are you in fear because you don't know how to manage your debt?

According to a survey made by Mr. Cooper (mortgage company), " one-third of Americans wished they could have skipped the holidays rather than spending it on gifts." Also added, "Thirty-two percent of Americans who purchased holiday gifts paid with credit cards."

I'm going to give you seven steps to manage your holiday hungover and do damage control right away.

Step One: Stop The Regrets
The first step to getting rid of your debt hangover is to stop with the guilt, the blame, and the regrets. It is time to shift your focus from debt to solutions.

Step Two: Track Your Spending
Yes, it is time to tight up for a bit and track all of your spendings. This will require creating a budget or spending plan. Don't know how to do this? If you want more information about how to get back on track with your spending make sure to check out my Fitness For Your Finances Course.

Step Three: Get Rid Of Your Credit Cards
I know, I know, it sounds harsh. But if you have been using your credit cards like cash and not for the right purpose, it is time to cut them off. At least for a short period of time until you learn how to manage them correctly. Focus on paying them off instead of keeping using them over and over.

Step Four: Pay Yourself First!
Before you spend on anything else, pay yourself first. As soon as you receive your paycheck on your income, make sure to separate a portion for your emergency fund, fun included, and of course your retirement.

Step Five: Set Your Priorities Straight
I talk a lot about instant gratification vs delayed gratification. The more instant gratification you have the further away your most important and bigger goals will be. Therefore, set your priorities straight. Unless your income is increasing on monthly basis to the point that you don't have to worry about getting things you want now, you should not be overspending.

Step Six: Eliminate Unnecessary Expenses
What are you spending money on today that you don't really need or you are not even using? Do you have magazine subscriptions that you are not reading? How about memberships that you are not using? What is on automatic withdrawal and you are not taking advantage of? Also, what habits do you have that maybe you should stop right now? Smoking, overdrinking, eating unhealthy, are things that don't nourish you anyway. Make sure to check that out.

Step Seven: Hire a Coach
Sometimes we need a little help and that is what coaches are for, to keep you accountable and on track with your goals. 

Make sure to check out my mini-course Fitness For Your Finances and get a headstart on your financial strategies this year. 

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