Can you believe it is 2005? Have you made your New Year’s resolutions yet? Maybe on your list of resolution you wrote, “to get a handle on your finances once and for all.” I know that was on my list about 7 years ago, and I am glad I put it on there. If it is not currently on your list, I would encourage you to add it.

Are you wondering how you will pay off your Christmas debt? So many people get into debt over the holidays so they can please people and make people feel loved and appreciated. Well, if you had to go into debt to do that, then YOUR family is going to bear that financial strain until the debt is paid off.

If you are one of those that paid cash for Christmas, let me just say CONGRATULATIONS! You get the bigger picture! If you are one that went into debt to have a great Christmas, then keep reading! This article is written just for you.

A few years ago, my husband and I decided to scale back Christmas spending. We contacted all our friends and family members months in advance and let them know that if it was mutually acceptable, we would like to stop exchanging gifts. This was to reduce the financial burden we personally needed relieved at the time, and we thought that would be a great present to give to others, to relieve some of their financial stress as well. Everyone LOVED the idea! They felt the same blessing we did. We bless our kids and our mothers during the holidays, and that is about it. You, of course, do not have to go to the extreme we went to. You can start small, maybe reduce the amount you spend on each gift, or make homemade items, or give the simple gift of a family picture.

If you cannot bear the thought of scaling back, but Christmas is still a financial burden, then add up how much you spent this past Christmas and divide that amount by 12 (for the 12 months of the year). Every month set that much aside into your savings account, so next year during the holiday season you can pay cash.

January is the best time to overhaul your financial position and make plans and goals for the upcoming year. If you would like to ask some financial questions, want to get started on the road of getting out of debt or start a monthly budget for the first time, we have some great boards here at Womens-Place. You can post a question to Ask The Pro: Debt Counselor or chat with us daily at the Getting Out of Debt Board.

Hope to see you there! Let 2005 be THE year you begin the journey to get out of debt!


Debt Buster is our resident expert on getting a handle on personal finances. She has personally tackled and won the war over debt and enjoys helping others fight those battles, as well.