Credit card debt an unwanted Christmas wish that comes true

Christmas time is a time to party hard, shop, eat out, and of course who can forget the gift frenzy! But wait…all of it can make you run up credit card and break your pocket. I’m sure that of all the weirdest and crazy things that appear on the Christmas wish-lists, Santa never gets such wishes “I want more debt”. But that is exactly what thousands and thousands of credit card users get on Christmas….more and more debt .

Holiday shopping is a temptation and it can lead to overwhelming debt so much so that people exhaust all their savings and investments to get out of it…but they still can’t get out of it. I have seen my cousin getting buried into Christmas credit card debt last year. His finances were out of control to that extent that he had to get enrolled in a debt settlement firm. Prior to settling his debts, he was in a desperate state; he was swimming in a pool of high rate credit card debt but now…he has reduced almost 56% of his debts and that too with in a year.

In the initial days he had shut himself from the world, he was embarrassed. He didn’t want to let all of us know about his financial position. He was getting statements in his mail but he ignored them, you know the typical “bury your head in sand and the problem will vanish” kinda attitude. But does the problem really go off? He got the answer but at that moment he was already in mess….credit card debt can be compared to a mold it grows wildly.

Better late than never…he started thinking of the way outs to get rid of the mess. He never considered bankruptcy as an an option because he knew that he owes the debt he has to pay it off…he did not want to run away from the problem anymore. He called up the credit card companies but at that time he could not afford to pay what they were asking. He did a bit of research on several debt reduction options and finally became convinced that debt settlement was the way to go.

But the road wasn’t smooth either….he had to work harder to save money for the settlement funds. The settlement amount was decided by the firm itself and while zeroing in on the amount his monthly expenses and budget were taken into consideration. The whole debt settlement program was tailored to fit in all his needs and it worked for him!! He does not use credit cards anymore.

I was really amazed at the change he have had after this whole experience, I spoke to him last week and he said “I probably get five to six credit card offers a day but I toss all of them. I’ll never go there again. Now I can start saving some money too”

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Celebrations with Christmas Cookies

Christmas celebrations and cookies go hand in hand!!! Yummy Christmas cookies are one of the most popular confectionery items. Though cookies can be bought ready made, but for people like me who love baking and decorating, there is nothing better than homemade cookies …..they are simply fun to make as well as fun to eat. You can even send these cookies to your near and dear ones as Christmas gifts. Just imagine the smile on their faces when they will see a Christmas gift basket filled with mouth watering homemade cookies…isn’t it simply wow

Fruit wreaths cookies are a craze these days. My kids simply love gorging on them. It’s very easy to prepare and is not at all time consuming. (more…)

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Christmas debt hangover- how to avoid it?

The Christmas bells have started chiming to usher in the festive mood. It’s the time of the year that brings excitement, cheer, ecstasy and above all hope. For many, however, the Christmas time lands them in financial hot water. While surfing on the net, I came across a survey that says that an average American spends around $750 dollars on holiday gifts and accessories. So, for a family that comprises of two adults the figure comes around $1500!!! Isn’t it scary?

I have seen people who don’t even have a spare $100 in their accounts but borrow money in the run up to eat and have fun in Christmas. It doesn’t have to be this way. Though Christmas is a party time but you have to remain careful and more importantly financially organized so that you don’t fall into the debt trap. If you go through our Christmas budgeting forum, you would find that people start planning for the Christmas holiday activities and spending in advance so that they don’t become a budget breaker.

For many, Christmas without gifts is not a Christmas!!! So, gifts are definitely a major expense for Christmas, but if you look carefully Christmas expense is not all about gifts….there is food, entertainment activities, home and Christmas tree decoration, gift wrapping and cards too. These are some of the hidden expenses that will quickly add up and you can go over budget. So take some time to forecast their costs, while you budget a spending plan on this Christmas.

While you are chalking out a spending plan, calculate the disposable income you can contribute for the Christmas costs. For instance, if you had started planning for Christmas some 6 months back then calculate the amount you will be able to contribute each week so that it covers your expected Christmas costs. Don’t be disheartened if the amount per week seems small. If you save $10.00 or $20.00 per week over these 6 months, then it can provide you with quite a hefty nest egg. And if your estimated expense is exceeding the amount saved in your nest then you will have to re-figure your spending plan to a more realistic amount.

These are some of the things that I do to avoid Christmas debt hangover…if you have something more to share then feel free to share.

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