Tuesday, March 4, 2008

Post Christmas finances

After the holidays many people find themselves burdened by new debt. Usually credit card debt which is the worst kind. So it is time to make a plan on paying off that debt asap. Remember that paying off your debt and reducing the amount of interest you pay [and any fees that might pop up along the way] is money back in your pocket.

I recommend paying as much as you can on the highest interest credit card debt and making sure that you make at least the minimum on any other debts that you have, because late fees never make sense to pay. Be pertinacious about paying off your Christmas debt because paying interest on stuff you gave away doesn't make much sense!

It is also a good time to sit down and figure out where all your hard earned money goes. I have been using Microsoft Money for the last six years and Quicken before that so I generally know where my money has gone. Before I switched jobs we use to eat out fairly frequently but now that I am earning less that was one of the areas where we cut expenses. If you are carrying a lot of Christmas debt look for areas where you can cut back. If you have ideas I would love to see them.

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