While the holiday revelries include gift-giving and parties galore, the New Year can bring a reality check to your finances. The average American spends between $100 and $1,000 showering their loved ones with gifts. However, after the holidays, debt and loan commitments can feel overwhelming. Below are some tips on how best to handle post-holiday debt. 

How to Manage Your Finances After the Holidays

Pay off Your Debts From Smallest to Largest

Start by laying out all of your debt. If you have more than one loan or credit card balance to pay, start by attacking the loan with the smallest amount and highest interest rate. Attack these debts one by one until you’ve paid off the entire amount. Small victories will motivate you to stay the course.

Start Budgeting for Next Year’s Holidays

Instead of panicking at the last minute next December, write out the average amount you spend on gifts and travel each year, then build it into your budget. By the same time next year, you’ll have a holiday slush fund that will allow you to spend, guilt-free. This will help build a discipline ensuring you won’t end up in the same predicament year after year. 

Consider a Consolidation Loan

If the amount of your debts is overwhelming, consider consolidating them into one loan. Work with a trusted loan officer to figure out a payment plan that fits your budget and timeline. Using this method, you’ll often pay off high-interest debts at lower rates. 

Now that the holidays are over, you might be feeling overwhelmed by the amount of debt you have. But by taking stock and creating a plan of attack, you can get out of debt and start fresh for the New Year. The qualified team at Coastal Finance Company has been providing the community of Savannah, GA, with highly flexible installment loans and quick financial assistance for years. Call them today at (912) 303-9979 or visit their website for more information.