Tips for Recovering from a Christmas Spending Binge

Recovering from a Christmas Spending BingeChristmas is a great time of year because it involves giving to those we love. Unfortunately, those presents cost money and many of us overstep our budget because we are basically a decent lot and we like to give. In addition, many of us like to put those presents on credit cards or charge accounts. Here are some tips on what to do when the bills come in.


A lot of people tend to put off Christmas debt until later. If this is you, then we have bad news—the debt isn’t going to get smaller by ignoring it. If anything, interest will make it larger, so just accept the fact that you have debt and start working to pay it off.


Don’t put even more things on your credit cards; focus on what you have spent and how you are going to pay it off instead.

Don’t Hide

You have to add up everything you spent and get an exact number telling you how much you owe. You cannot run or hide from your new debt. Instead, make sure you know exactly what you are working with.

How Much Extra Can You Afford?

Figure out your expenses and come up with a number that you can put toward paying your extra Christmas debt. Panicking and trying to pay it all off at once can sometimes be just as bad as ignoring it.

Do the Math

Figure out how much you owe, then figure out how soon you want to pay it off. Then, simply divide by months, weeks and even days to get an idea of how much you will need to sacrifice to pay the debt off. Don’t forget to include interest.

Do I Really Need This?

Be vigilant about unneeded expenses, such as entertainment or going out to eat. Ask yourself, “Do I really need this?” everytime you are about to spend money on a questionable item. If you eat out 5 times a week, you may be able to pay off your entire debt by only eating out once or twice a week.


If you read this far, you are on the right track. Our mortgage brokers from Rockingham, Kwinana and Baldivis would like to congratulate you for your responsible financial behaviour.
Call us: (08) 9527 1800.