Thanksgiving is just days away, and with it, the 2023 holiday season. While the holidays can be fun, joyous and loving times, they can also be … expensive. And they're likely to be even more costly for those already coping with high-interest debt on their credit cards. With current credit card interest rates hovering around 20%, many find themselves stuck in a financial rut, right ahead of the holiday season when money is needed most.
Fortunately, there are some safe and reliable ways for borrowers to get back on their feet by cutting their debt. It won't happen overnight, but it can start happening now, giving you one less item to worry about ahead of the holidays.
3 ways to cut credit card debt ahead of the holidays
Here are three effective ways to start cutting down your credit card debt.
Use a debt relief service
can provide a valuable service for consumers throughout the year, but especially now. They can primarily help via two different strategies. With one, they directly negotiate with your creditors to reach a settlement figure that both parties are comfortable with. That figure should be lower than what you would have been on the hook for without the debt relief service company.
But they can also help by consolidating your debt into one, more manageable loan. By consolidating your debt altogether, you'll have one payment to make each month at the same time, instead of multiple ones with different due dates. You'll also usually be able to consolidate it into a loan with a lower rate than you're paying on your other varied credit card debts.
Consider a passive income gig
While finding another job can always help make ends meet (and reduce debt), it may not always be practical, particularly during the chaotic holiday season. But there are gigs out there that require very little involvement on your part.
There are a variety ofthat you can pursue right now, ranging from taking to renting parts of your home to pet sitting or selling unused items online. While you won't necessarily become rich with any option, every extra dollar helps, particularly when you can use those funds to pay down your debt.
Reconsider your budget
While we may all think we're doing our best to save money and pay down debt, there's likely room for improvement. So strongly reconsider your budget. Look for ways where you can spend less to get more (think big warehouse shopping in bulk). But also look for things you'd be comfortable cutting if it meant extra money in your pocket to then use to pay down debt.
Eating out often and a morning coffee may not seem like a lot in the moment, but they add up day to day and week to week. Reconsider if you need those items or can you hold off through the holidays to instead use that freed-up cash to pay down debt? You may be surprised at how much more money you have to use.
The bottom line
While these are three ways to cut credit card debt ahead of the holidays, they're not the only ways. There are Begin exploring your debt relief options online now and reclaim your financial health now so you can start 2024 on the right foot.to choose from, but the most important is just getting started. With the holiday season ready to take off, you'll want to have more money to spend on loved ones and less going toward costly debt. But to accomplish the former, you'll need to cut the latter. There's no time like the present to get started.
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