The Christmas Blues (A.K.A. January Debt)
As the holiday season is fast approaching, we thought that you might want to consider your financial situation after Christmas. Are you planning to pay for most of your gifts on credit cards?
Please do not buy into the logic of the credit card companies. When they write you the note with your November or December statement that you can skip the December payment because you have been such a good customer, consider that the interest is still being charged at their normal rates (18% – 21%). All that is happening is that your balance on the card will go up in January-and so will your monthly payments.
When credit card companies continue to mail you additional cards, it is easy to convince yourself that you are not at risk and you can handle the credit. However, the credit card companies are under no such delusion. They know exactly how many defaulted payments they will get and they are prepared to accept the risk of a default as a business decision. The trouble is the risk of default is your risk.
When you do your Christmas shopping, budget your purchases, make a list and stick to it. Do not spend just because you can pay with plastic, you do not want a large sum of credit card debt after the holidays. Yes, it is difficult to do this but the payoff is worth it. In January you will not be overwhelmed when you open your mail and your finances will be in order.
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.