Get rid of your holiday debt hangover

Get rid of your holiday debt hangover

Five easy ways to consolidate your debt after the festive season.

The tree has long been packed away, but the festive debt lingers well into the New Year for many. But there are options to help minimise the ill effects.

Road to recovery

It’s easy to get caught up in the festive season of giving – and the Boxing Day and New Year sales that follow.

New Zealanders spent over $8b on cards in December alone. If you’re among the many who did so, your repayment habits could be crucial to your credit health.

Prioritise repayments

Paying off debts with the highest interest rates is a good idea. Attacking these first will reduce the total interest you pay compared to only making minimum payments.

It may hurt in the short-term, but in the long-run making larger repayments now will see you debt-free sooner.

Merge your debts

Taking out a personal or debt consolidation loan to pool your debts into one repayment may help relieve pressure.

You can consolidate any debts such as personal loans and credit cards as well as expenses such as overdue rent, utilities, medical costs and even tax bills.

Some lenders are more flexible and can provide custom solutions to borrowers who need help even though they may be behind on repayments or have a credit history blemish.

Consider losing the plastic

With any debt consolidation, it’s a good time to reconsider your habits. For example, replacing any old credit card with a debit card could save you from pain down the track.

Ask for help

If you’re struggling to make repayments, reach out to your utilities, credit or loan provider before things get too difficult.

You may be able to negotiate a more manageable payment plan and breathe easier once again.

Or, if you’d like to learn more about your debt consolidation options, speak to a Mike Pero Adviser today.

 

Mike Pero (New Zealand) Ltd Copyright © 2019 All rights reserved | Lending and policy criteria and terms and conditions apply. Content on this website is general in nature and is not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. Readers should not rely on this content and should always seek specific financial advice appropriate to their own individual circumstances.