With the inception of the first credit card in 1953 has come 58 years worth of charging our Christmas shopping on our credit cards and then paying the consequence in January when the bills roll in. The question is, what is the best way to deal with your credit card debt after the holidays? This really comes down to how much damage you have done.
If this is your first time using credit to finance the holidays, your balances are likely negligible and so you should just divide them into 3-4 monthly payments and try to hammer them down. Do not resort to minimum monthly payments no matter how low and tempting they may be as you will likely still owe the same balance once next Christmas has rolled around.
If you have accumulated a lot of credit card debt over the years and are making minimum payments, it's time to seriously think about consolidating. If you own your home this is likely one of most affordable ways to raise the money to consolidate your credit card debt.
There are many different types of home equity products to choose from. You could obtain a home equity loan, a home equity line of credit or if you have a lot of debt, you could refinance your first mortgage to pay off your debt.
Your best bet is to work with a local mortgage broker who can present you with many options as opposed to going directly to a bank where they can only offer you their products and services. You will also need to give consideration to the steps you will take to avoid going into debt with your credit cards again. The benefit to consolidating coming into a new year is that you can also formulate a plan to save for next year's holiday spending.
For more information about how to deal with holiday financial stress and prepare for the credit card bills that are coming in the mail, visit www.firstequity.ca.
