The holiday season is here, and with it, the inevitable surge in holiday purchasing. Be it presents for the whole family, travel expenses, or hosting that perfect dinner party, the holidays are often accompanied by seemingly unavoidable and exorbitant spending. Then January rolls around, and with it, a staggering credit card bill.
According to Gallup, more than 30 percent of adults in the U.S. expect to spend $1,000 or more on holiday gifts. On average, holiday shoppers spend upwards of $900 on presents alone.
So how can you avoid the aftermath of holiday expenses? According to Doug Oliver, wealth manager at Capital Asset Management, the key is to prepare. As early as January, you can begin saving for the following holidays season. Oliver suggests that you create a holiday spending budget and stick with it. He also stresses that you should not stop your regular savings patterns in order to buy more stuff for more people. Instead, plan ahead and stay within your designated budget.
But what if it’s too late? If you are already well into your holiday shopping and realize that the funds are running dry, you’re probably wondering how you will recover come January.
Here are five ways that you can assess your debt, recover from holiday spending, and start preparing for next year in order to get your finances back on track after the holidays.
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