christmas debt Archives | Ovation Credit Repair Services

11 Months ‘Til Christmas…Are You Ready?

By | Budgeting, Credit Cards, Credit Repair, Debt, MasterCard, Payment, Personal Finance, Visa, Your Credit

Christmas season revelers were singing, “Bring in the noise, bring in the funk.” Funk is right! But the aftermath – high interest rates on credit cards – bring a different kind of funk to the months of January and throughout the year. Spending on Black Friday may have sounded like a good idea at the time, but overspending is never more prevalent than at Christmas. The months following yuletide bliss can be ferocious, especially for those drowning in high interest credit card debt. It’s so easy to justify that extra credit card debt at Christmas, but recovering from the spending can take you right into the next Christmas season. It’s possible that high interest rates on credit cards may have more to do with winter depression than lack of sunshine.

While retailers coast into the new year on your Christmas purchases, you’re stuck in a midwinter depression, paying interest on the purchases you made the day after Thanksgiving. You know the problem, but here is something perhaps you do not know: Your case is not hopeless. Getting out of the winter credit card funk will take a little work, but we can help you create a plan to pay down debt quickly.

Our suggestion? Start with the card that has the highest interest rate and pay it off first. This sounds radical since some financial advisers may encourage just the opposite: paying lower balances first. However, a financial payoff plan that targets high interest rates first is a good idea. Why? Let’s say you pay off the card of lesser interest first. While you are doing so, the higher interest is piling up fast. You will pay more in the long run on a higher interest loan that is left idling on minimum payments than you would on a lower balance card. Paying off the higher interest loan will result in less total interest piled on to your debt. When the high interest loan is eliminated, you can then concentrate greatly on the lesser loan, even adding the difference paid from the higher interest loan, which is now happily paid off.

Paying off high interest credit cards can help positively affect your credit rating, especially if you get the balances on the cards under 50%. Outstanding debt accounts for 30% of your credit score, so paying off those high interest cards can make a difference.

Ovation specializes in diffusing the funk on high interest loans. Our payment tools will take the guesswork on how to get started.

4 Great Tips for Tackling Christmas Debt

By | Budgeting, Credit Cards, Debt, Featured, Payment, Personal Finance, Your Credit

When it comes to Christmas, people often throw their budgets out the window. Credit card companies sing carols in the halls as the debt piles up and their bonuses get bigger. People just assume they can take care of it next month or decide they’ll figure it out after the holidays because Uncle Fred really needs that food dehydrator.

Once the presents are unwrapped and reality sets in, you realize that your credit cards are bulging with debt and you need to make some decisions on how to get it paid off before next Christmas.

Pay Off as Much as Possible Right Away

Odds are most of the Christmas shopping was done recently, so the interest hasn’t been applied to it yet. Try and take care of as much of the debt as possible before that interest hits. It doesn’t matter if you make a payment every week or so, as long as you are paying down that debt. You should start with the highest interest rate cards first and work your way down. Do not pay only the minimums as this can take literally years to pay off the debt.

Make a Plan

Call each of your credit card companies and find out exactly who much you owe on each card, what their monthly interest rates are and when payments are due. If you have any credit cards that may go over the limit because of interest, then take care of them first. Make a plan to pay down and eliminate the debt each month. The last thing anyone wants is additional over the limit fees. Also, make sure you pay your bills on time and save yourself late fees.

Consolidate the Credit Debt

If you have a home equity line of credit or can get a home equity loan, then you can completely pay off the credit card companies, and instead, make a single loan payment. The interest rate on the loan is likely to be much less than the credit cards and you don’t have to worry about juggling several different payments. If you do chose this option, then try to stay away from using the credit cards until the loan is paid off. You don’t want a large monthly loan payment and credit card payments as well.

Work With A Credit Counselor or Repair Expert

If the debt is overwhelming and you don’t feel like you can take on the debt yourself, then you can work with a credit counseling or credit repair service. Credit repair services like Ovation specialize in helping people with large debts make the right decisions and will even work with credit card companies to help save on interest rates and monthly payments.

Christmas is a time of great joy and celebration, but for many it’s also a time for large debt. Don’t get stuck in the quagmire; follow these tips for getting your life back on track after the holiday season.

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