With the holiday season in the rear view mirror and a new year upon us, you may be working on sticking to your New Year's resolutions. One resolution you should try is to take care of all your holiday debt. From buying gifts for Christmas to decorations for your New Year's Eve party, chances are you may have used your credit card one too many times. It is quite possible to get this debt under control, but it will not be an overnight task. By following these tips, you will be able to get a handle on your debt and improve your credit in the process.
Budget your spending
Your best bet to get your debt under control and improve your credit score is to come up with a game plan. By planning your financial future, you will have better spending habits from here on out. If you have trouble planning months in the future, start off small by planning a budget for the week. As you get more comfortable with planning, you can start making budgets for weeks and even months in advance.
While making a budget, create a list of all your expenses. Once you have done this, decide what areas you will use your credit card on. It is still important to use your credit card to build up credit, so use it minimally. A good rule of thumb is to use it for gas or buying a small daily purchase like coffee every morning.
Lower interest rates
One component that may have contributed to your holiday debt was your credit card's interest rates and charges. Interest rates vary by card and credit card company, so yours may be different from someone else's. To help get these fees down, discuss with your credit provider to see if you can transfer your debt to a card with low interest rates or one with 0 percent APR. Getting lower rates will not completely wipe away all of the spending you did during the holidays, but it will help ease your interest charges.
Make extra payments
If you have trouble getting a new card from your bank, consider making more payments. Credit cards require you to make one monthly payment, but that is the bare minimum. To take care of your holiday debt quicker and improve your credit score, consider making more than one payment a month.