Tag Archives: Saving Money

8 Simple Ways to Stretch a Dollar

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Living within your means is the foundation of financial health. But, that’s easier said than done. If you find yourself in the red at the end of too many months, you’re not alone. “Sticking to a budget” is the No. 1 financial challenge for Americans, according to a recent GOBankingRates survey.

To get the best savings advice, GOBankingRates turned to the smartest money experts out there — the finalists of our “Best Money Expert” competition, we asked them:

“What are the best ways to stretch a dollar?”

In response, these experts delivered strategies to save more, spend less and make room in your budget for what’s really important. Click through to read their tips.

1. Go on a Spending Freeze.

Nicole Lapin, a consumer expert and New York Times best-seller author, shared this advice for those looking to get more out of their budgets: “Go on a spending freeze with your partner, colleagues, or best friends.”

To put this spending freeze in action, Lapin suggested looking for everyday ways to spend less, like staying in with inexpensive bottles of wine over heading to the bar, or hosting a clothing swap with friends instead of going on a shopping spree.

Lapin is a big believer in the power of friends to support each other in creating better financial habits. “Create a support system, and help each other,” she said. For example, if you really want to buy something but you have a savings goal, “save with a friend,” Lapin suggested. “She likely has something on her wish list, too, and it’s easier to commit to saving long-term if you go in on it together.” You can even up the ante, and “create a friendly competition around who is doing best at cutting expenses — think ‘The Biggest Debt Loser,'” said Lapin.

You’ll see big results as you work to curb overspending, but a strong support system is key. “As money issues become more intense, a like-minded community will keep you sane and moving in the right direction,” Lapin said.

2. Stop Mindless Spending.

Tony Robbins, a business and life strategist and bestselling author of “MONEY: Master the Game,” said that stretching the value of a dollar means spending it on what will add the most value to your life.

“Focus instead on the returns you’ll reap tomorrow,” Robbins said. “Often you can have the same level of enjoyment, if not more, by doing something simple.” For instance, if you’re getting together with friends, why not skip the $50 restaurant meal and “order in a couple pizzas and beers and split the cost among your group?” Robbins suggested. “Trade one good time for another, save yourself about $40 each time out, and you’ll be way ahead of the game.”

While saving $40 at a time doesn’t sound like much, this kind of mindfulness adds up. “[Save $40] once a week, and put those savings to work, and you could take years off your retirement time horizon,” Robbins said. That $40 a week adds up to $2,000 a year, which you can use “to harness the power of compounding and help you to realize big, big gains over time.”

“How big? How about $500,000 big?” Robbins said. “That’s right, a half million dollars. How? With the power of compounding at 8 percent over 40 years, that $40 weekly savings — $2,080 per year — will net you $581,944.

3. Always Be on the Lookout for Savings.

“Always look for a way to save, and don’t let saving opportunities pass you by,” said Jeanette Pavini, a finance reporter and spokesperson for Coupons.com. Pavini makes it her mission to help readers find easy and simple ways to save a little everywhere they shop. “There are so many opportunities to save out there, and it typically only takes a nominal amount of effort to take advantage of them.”

“In fact, I almost never make a purchase without applying some type of savings,” Pavini continued. “For example, buy a box of cereal on sale, apply a coupon from Coupons.com, get 2 percent back in credit card rewards, clip the box top so 10 cents goes to my child’s school, and use my grocery store loyalty card so I get points toward gas saving. One box of cereal — five different savings strategies.”

4. Try Envelope Budgeting.

For those who have trouble sticking to a budget, “I recommend that on payday, you take out the dollar amount you need until the next pay period and split it up among your envelopes,” said Clark Howard, host of popular nationally syndicated radio program “The Clark Howard Show.” “When one envelope empties, you either take money from another envelope or you do without until next payday.”

Moving to a cash-only system can help you cut spending and get in the habit of more carefully considering purchases. “Debit cards and credit cards can be the Bermuda Triangle of your wallet because it’s so easy to lose track of finances when you use them,” Howard said.

If you’re more high-tech, Howard said you can try a method invented by his executive producer, Christa. “She hit on the idea of putting money into different accounts for different purposes,” Howard said. “Today, she has three checking accounts and one savings account.”

5. Stack Discounts to Lower Your Grocery Bill.

Kyle Taylor, founder of popular personal finance blog ThePennyHoarder.com, gave this personal finance tip to families looking to stretch their dollars: “Groceries are often one of the largest expenses for families, so it makes sense to start here when you’re looking for ways to cut back.”

For true savings, Taylor’s advice is to look beyond the obvious. “We all know about couponing, but saving money is way easier when you know how to stack discounts.” Instead of settling for using just a coupon to save, you can combine that coupon with other savings strategies to cut your grocery budget down. “Utilizing an all-of-the-above strategy has helped me reduce my grocery bill by more than half,” Taylor said.

A favorite tip that Taylor uses is buying discounted gift cards from sites like Raise.com, which includes cards from grocers like Kroger, Whole Foods and Target. “These gift cards are sold for 1-25 percent below face value, meaning that I’ve saved money before ever stepping into the grocery store,” Taylor said. “I stack those savings on top of my regular coupons and then combine it with grocery rebates from apps.”

6. Get More Money Flowing In.

Of course, the advice to “spend less than you earn” is an equation that has two parts — how much you spend and how much you earn. Entrepreneur and performance coach Josh Felber has made it his mission to help people achieve success by following their passions, and in his view the best way to approach the “spend less than you earn” equation is to focus on the second part.

Instead of trying to stretch dollars, “always have a consistent flow so you don’t have to stretch,” Felber said. There’s a limit on how far you can cut your spending — everyone needs to cover the basics. But if you focus and invest in earning more, there’s no limit on how much your income can grow.

7. Put Your Money to Work.

Another “Best Money Expert” finalist, Robert Kiyosaki, emphasized the importance of getting more out of your money. “Invest it,” said the entrepreneur and author of “Rich Dad Poor Dad,” the self-proclaimed No. 1 personal finance book in the world.

Investing is the key to achieving true financial freedom. “Put your money to work for you … instead of working for money all your life,” Kiyosaki said.

8. Negotiate.

To truly stretch a dollar, never accept an initial price or offer. Whitney Johnson, an investor, innovator and author of bestselling book “Disrupt Yourself: Putting the Power of Disruptive Innovation to Work,” said that you should “negotiate, even when you think you shouldn’t.”

Negotiating is one of the best ways to make sure you’re getting the most value for your time, money or other resources. Johnson suggested following this advice, or “else you will earn too little or spend too much.” Fail to negotiate, and you’ll lose out on dollars you could have saved or bigger paychecks you could have earned.

7 Money Questions to Ask Yourself in the New Year

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Will you make financial resolutions for 2016? If so, you’re not alone. According to a study done by Fidelity Investments, financial resolutions are the most popular kind of new year self-improvement. Not only that, but they’re also the most successful, with 29% of people surveyed reaching their financial goals and 74% getting halfway there. Compared to the 12% success rate for resolutions concerning health and fitness, planning to get your finances in order seems like the way to go this year!

You don’t want to just make resolutions, though — you want to be part of the 29% that stick with them all the way through the year. To set yourself up for financial success in 2016, you first need to understand your relationship with your finances.

1. What are your financial goals for the year?
A new year often means new goals and milestones in your life, and your financial plan needs to change to keep up with those. Maybe last year you were saving for a trip abroad, but this year you are saving for a down payment on a house. Or maybe you’re edging closer to retirement and need to start saving more aggressively.

Don’t be vague when identifying these goals. A concrete milestone, such as “I want to add $6,000 to my emergency fund” is going to keep you motivated a lot longer than a vague one like, “I want to save money.” Once you know what your financial goals are, you’ll be able to come up with a spending and budgeting plan for how to reach them.

2. What are your personal priorities for 2016?
Factors other than financial goals should influence your budget, too. Is it important to you to spend time with friends on a weekly basis? Add a “fun” line in your budget for activities like eating out, movies, and weekend activities. Do you want to support the arts in your community? Set aside money for a seasonal subscription to a local theatre or orchestra. Do you have specific causes that you care about? Budget a monthly allowance for donations or charity.

When it comes to finances, it’s easy to fall into the trap of letting your financial goals determine your spending. But life is more than just retirement and mortgages. Give yourself permission to let your personal priorities influence your spending decisions, too. You’ll be happier, more satisfied with your financial life, and better able to stick to the budget you set.

3. Where did you slip last year?
The new year is an excellent time to take stock of what did and didn’t work in the past year — that includes where you didn’t quite follow your budget. Did you eat out more than you should have in 2015? Not save as much for retirement as you wanted? Impulse shop too frequently?

You can’t improve in 2016 until you know where you went wrong the year before. Take some time to look at your spending from the last twelve months and identify the area where you slipped up. The make a plan for how to avoid those mistakes this year. You may need to automate the money that goes into your savings and retirement accounts. You may need to exercise a little more restraint in your spending. Whatever the solution, it will be easier to put into practice once you know what the problems are.

4. What are your mandatory expenses?
Once you know your goals, priorities, and weak spots, it’s time to begin setting up your budget. Start by identifying the living expenses that you must pay every month. These will include your rent or mortgage, insurance bills, utilities, and any debt payments. Budget for these expenses first, subtracting their total from your monthly income after taxes. Whatever is leftover is what you have available for variable expenses.

5. How much can you save each month?
Once you’ve determined how much to set aside for mandatory expenses, it’s time to look at savings. Savings can include long-term goals, like retirement, or short term goals, like a vacation. Identify everything that you want to save for this year, then order them in terms of urgency.

Some goals, like retirement, you should save for every month. Other things, like travel or large expenses, can be saved for one at a time. Once you’ve met one savings goal, you can move on to the next one. When you decide what you’d like to contribute to each goal, the best way to stay on track is to make saving non-optional. Set up an automatic transfer, either from your paycheck or your checking account, to put the money directly into savings as soon as it lands in your bank account. You won’t risk spending it accidentally, and you will ensure that you make monthly contributions towards your savings.

6. What are your spending triggers?
A lot of financial management is about cutting spending — reducing your insurance bill, avoiding credit card interest, eating out less. But all the small cuts in the world won’t help if you don’t know your spending triggers.

Spending triggers are those moments or circumstances that make you pull out your credit card and break the rules of your budget, even when you have the best of intentions. If you want to cut your spending, take some time to identify these triggers and come up with a plan to eliminate them.

If you can’t resist a coupon code when it shows up in your inbox, then you should unsubscribe from promotional emails. If you always want to eat out when you’re stressed, create a new, free routine for unwinding after a hard day at the office. Do you always spend more when you go shopping with a certain friend? Come up with other activities the two of you can do together and leave your credit card at home when you go out. Once you’ve identified your spending triggers and come up with ways to avoid them, you’ll have a much easier time sticking to your budget.

7. Where does your budget have wiggle room?
Managing your finances is awesome, and cutting down your spending to save more is a great goal. But if you are on a strict budget all the time, with no room for any lapses or fun purchases, you risk getting “budget burnout” and slipping back into old, bad habits.

To avoid that, identify the places where you can cut yourself some slack. Maybe you’re giving up eating out but can still treat yourself to a latte once or twice a week. Maybe you’re giving up cable, but you and your roommate can split a Netflix subscription. Allow yourself a few inexpensive extras and sticking to your larger financial goals will feel much less stifling.

Finally, wiggle room also means planning for the unexpected. It may seem smart to put every extra penny into savings and retirement, but what happens when your car breaks down and you don’t have any money for the repair? Leave a little wiggle room for surprise expenses, and you won’t just start a budget, you’ll stick with it.

The beginning of a new year is the perfect time to get your finances in order. Be honest and realistic with yourself as you put together your plan for 2016, and you’ll find yourself on your way to sustainable financial success!

*Original article source courtesy of the Huffington Post.

10 Life Hacks to Help You Free Up Money

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Screen-Shot-2015-09-17-at-2.15.00-PMAre you looking for ways you can cut down on expenses and put a little extra money aside? Maybe you’re looking to budget more efficiently, fund that big vacation or save for retirement.

This post is dedicated to little tricks to keep more of your money in your pocket. You can have a little fun with these things, too.

1. Call to Cancel. See How They React.

Savings doesn’t always mean going without. Sometimes when you call to cancel a service (e.g. cable, Internet, satellite radio, etc.), they’re very motivated to retain you as a client. After all, some of your money is better than none at all.

If they’re focused on retention, they may give you a reduced rate for a certain period of time or direct you to a plan that costs less without 37 channels that show 20-year-old movies.

Another good strategy in this situation is to research their competition. Tell them you’re switching to Competitor X who’s offering the same or better level of service for $50 cheaper. Play them against each other. Even if they just offer to match, this works to your advantage. You don’t have to take the equipment back.

2. Cut the Cord.

A lot of people are cutting the cord and canceling cable for good. A couple of technological developments happening right now make this very possible.

For starters, you can now get HDTV out of an antenna to watch your local programming. You can also subscribe to multiple services like Netflix, Hulu and even HBO online to get your television for less than you would pay on a monthly basis for a cable subscription.

However, you might run into a problem with sports. Many games are shown on cable, but all the major professional leagues have their own subscription services now. Just be aware you may have to pick and choose sports to make cutting the cord cost-effective.

3. Reacquaint Yourself with Your Local Library

Take some time to browse your local public library. While it is good to see they still have books at the library, they also have a large selection of CDs and DVDs.

You can also check out e-books! Seriously though, your library may have a lot more education and entertainment options than it used to. It may be worth checking out if you haven’t been there in a while.

4. Lunch at the Grocery Store.

Check out your grocery store’s sample selection – it’s worth your while. A motivated person has many choices, often including dessert, from various sample lines. Why do you think everyone is queued up when you go in there on a particularly busy Saturday? They’ve discovered a secret.

“Of course I’ll try the chicken cordon bleu…Why yes! I think I’ll have a butterscotch cookie.”

It’s important to note that the portions are small. You can definitely make this work for lunch, but not dinner.

5. Pay Attention to Those Receipts.

After you’ve done your shopping (and maybe gotten a midday meal in the bargain), it’s time to head to the cash register. However, it’s important to remember the savings doesn’t always stop when you check out.

Many stores add coupons to the backs of receipts now. It’s their way of keeping you coming back for more, but it also saves you money to use those coupons.

6. Get That Deposit Back.

Many states charge a small deposit on the purchase of all bottles and cans. You get that deposit back when you bring them back to the store and feed the machine.

You won’t be able to retire early on the amount you get back, but it will give you some spare change for the drive-through.

7. Save Those Ketchup Packets.

Save those extra ketchup packets from fast-food restaurants. If they give you four sauce packets and you only use two, stick the others in a drawer. They could come in handy when you run out. You’ll also be well-stocked when the zombie apocalypse causes a worldwide shortage of whatever that stuff is they use for onion ring sauce.

8. Rewards Programs.

Many businesses have rewards programs for their customers. You can shop around to see who gives you the best deal. There are programs for things like credit cards, airline miles and grocery stores. Although these are the more traditional ones, you can find rewards programs for all sorts of things like movie theaters, pharmacies, etc.

9. Attend Matinee Movies.

There’s not many things you want to roll out of bed before 9 a.m. on a Saturday for, but it might be worth it for a matinee movie. Different theaters will have different times, but if you go to one of the early showings, you can often get a ticket for $5 or $6.

It can be super cheap entertainment if you manage to run through without succumbing to the smell of the popcorn stand. But there is one trick that could save you a couple bucks: If you and your friend are going to drink the same beverage, don’t go with two smalls. It’s often cheaper to get a large drink and two straws. Just make sure you know whose is whose. Plus, the same matinee strategy will work if you go to the theater for a play as well.

10. Gift Card Sites.

There are sites online where you could sell such unwanted gift cards to someone else at a slight discount to benefit you both. Convert a gift card you’re not going to use into cash and get a great deal on something you would use!

6 Ways You Can Save More Money

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Save-Save-SaveDid you close out last year with a little less in your bank account than you would’ve liked? If you’re like a lot of people, you might be disappointed in how much you managed to set aside.

Saving more was the biggest financial priority for 29% of young people, as revealed in a recent survey by Bankrate. The only money issue millennials were more concerned about was paying bills.

Knowing you need to save more and being able to do it are two different things, however. How can you set aside more money when you’re stretched thin as it is? Thankfully, saving a little extra each month isn’t as hard as it may seem. Here are a few suggestions.

1. Pay yourself first. One of the hardest parts of saving money is doing it consistently. You can make it easier on yourself by automating the process.

“Pay yourself first by setting up automatic savings through payroll deduction in your work retirement plan or through automatic transfers through your bank account,” Antonio Morello, the chief investment officer at McMahon Financial Advisors, said. Aim to save 10% to 15% of your salary every year, including contributions to your retirement plan. As an added bonus, those deductible retirement contributions will also save you money come tax time.

2. Spend less on food. Frequent delivery orders and dinners out with friends add up quickly. Save yourself some money by being smarter about how you eat.

“Plan your meals for the week to avoid last minute take-out orders,” Willie Schuette, a financial coach with The JL Smith Group, said. You can also save by buying in bulk and saving leftovers for later rather than tossing them in the trash, Schuette suggested.

3. Cancel subscriptions you don’t use. Do you have a gym membership you barely use or a monthly box subscription you don’t really need? Cancel those recurring charges and funnel the extra money into your savings or to pay down debt. You could end up with a few hundred extra dollars in your pocket at the end of the year.

Have trouble keeping track of which subscriptions you’ve signed up for? There’s an app to help you out. Trim will comb through your credit card statements and bank accounts, find the recurring payments, and ask if you want to cancel the service. It’s free to use, though there’s currently a waiting list.

4. Donate to charity. “Donating to charity is a great way to boost your deductions while helping others,” said Don Chamberlin, a Saint-Louis-based financial advisor and president of The Chamberlin Group.

Donations can come in the form of cash, stock, and even big-ticket items like cars, but you’ll need to itemize and keep accurate records to get the tax breaks.

5. Keep an eye on your credit. Don’t pay more than you have to the next time you need to borrow cash. Maintaining a good credit score “can save you money when it comes to buying a car or anything else on credit, car insurance, or buying a home,” Herb White, a financial planner and president of Life Certain Wealth Strategies, said.

Credit scores above 700 show lenders that you do a good job of managing the money you borrow, according to Experian. You can boost you credit score by paying bills on time, not running up balances on your credit cards, and reducing your debt.

6. Check your withholding. A big tax refund sounds pretty awesome. That is, until you realize that the government is really just paying back the interest-free loan you gave them.

“If you got a big tax refund it means you are having too much taken out of your paycheck every pay period,” Schuette said. File a new W-4 with your employer so that you get more of your money when you actually earn it. Then, shift that extra cash to savings or use it to meet another financial goal.

How to Save Money Even When It Feels Impossible

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When living paycheck to paycheck, it’s hard to set aside any money at all, let alone start saving substantially for things like retirement and emergencies. You get a paycheck, you immediately use it for rent, student loan payments, utilities and more, and all of a sudden you’re left with just barely enough to get by. So how can you even think about saving?

Well, the truth is, you can and you should, because the last thing you want is to be stuck with an emergency room bill or totaled car and have absolutely no money. In fact, most financial experts agree that everyone should have at least $1,000 in savings for those types of financial emergencies. To that end, here’s how to save money– even when it feels impossible:

Get in the Right Mindset.

Saving money is more than just a habitual practice– it’s a mindset.  Like starting a new workout regimen, saving money must be a lifestyle you’re completely committed to in order to be effective. So, the first step to saving money is making the decision to do so. That way, when you’re enticed by that sale at the mall or a nice dinner, you’ll have a clearly defined reason to say “no.”

Start Small – Very Small.

Saving money doesn’t have to mean putting 10% of every paycheck away. You’ve likely heard it before, but every dollar counts. At first, save more like 2% or even just $20 per month. OK, maybe that won’t make you rich as fast as saving a more substantial amount, but the important thing is it’s a start. For weeks or months that you don’t spend quite as much, put a bit more in savings than you normally do. Just commit to saving something,no matter how small the amount.

Make it Automatic.

When many people first start learning how to save money, they find it’s easiest when it isn’t a conscious decision. In other words, if you have your bank automatically transfer money into your savings account every time a paycheck is deposited, you won’t even see that money for long enough to consider spending it. If auto-transfers make you feel a bit out of control, take on that responsibility yourself.

Deny Yourself Access.

One of the hardest parts about saving money is seeing it accrue and knowing you could use it if you wanted to. If that sounds like a feeling you’re familiar with, do yourself a favor by setting up an account that’s a bit harder to access. For instance, ask your bank if they can add an account that can only be accessed by physically walking into a bank to make a withdrawal or using an ATM card. If you don’t have a debit card attached to it, you’ll be less likely to swipe first and regret later.

Keep Careful Track of Your Spending.

It goes without saying, but how much you spend has a direct impact on how much you’ll be able to save. If you know you have some spending problem areas (like eating out a lot or buying an unnecessary amount of upscale sneakers), focus on reducing those however you can. The best way to spend less (and save more) is to know where every dollar is going– then you can pull back in certain areas. If you can’t do this without a bit of help, try using budgeting apps like Mint or Mvelopes to track your spending and come up with a financial plan.

Cut a Few Expenses (At Least for Now).

As you start keeping better track of your spending, look for certain regular expenses that you may be able to do away with completely. Are you still paying for cable that you rarely watch, a magazine subscription that goes unread more often than not, or a gym membership you could replace with free workouts in your apartment? Get creative, and know that you don’t have to give these things up forever. Even just cancelling for a few months can allow you some wiggle room to save more money faster.

You can also look at refinancing options for certain expenses, like car payments and student loans. See if you can spend less each month on those- at least for now while you’re working on building a savings account.

Find Ways to Earn More.

If you have some extra time on your schedule (even if you work a 9-to-5 office job it’s likely that you do), consider finding ways to earn some more money each month. Pick up dog walking or babysitting gigs, or even do some freelance work on the side. This is beneficial for two reasons: One, you’ll be making more money. And two, you may find yourself spending a bit less if you’re, say, babysitting on a Friday night instead of going out.

If you’re trying to figure out how to save money, remember: It’s doable, you just have to be committed, organized, and focused on an end goal. You can do it!

*Original article source courtesy of Forbes.com.

10 Ways to Bounce Back After Holiday Spending

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holiday_spendingIf you’re waking up with a holiday spending hangover, you’re not alone. According to the Experian Holiday Shopping Survey, 60 percent of adults say holiday shopping puts a big strain on their finances.

“We have Black Friday, then dark January,” said Rod Griffin, director of public education at Experian. Consumers tend to find themselves trying to dig themselves out of debt and get back on track financially in the new year. This is typically because they spend more than they expect to during the holidays and use credit to fund their shopping.

If you exceeded your holiday shopping budget, racked up debt and depleted your savings, you can bounce back. Here are 10 steps you can take to get your finances back in shape in the new year.

1. Review Your Holiday Spending.

The first step you should take after the holidays is to review all of your spending, said Bruce McClary, spokesperson for the National Foundation for Credit Counseling. Look at how much you charged to credit cards, how much you spent from savings and the categories you were spending on — such as gifts, food and entertainment. “It gives you a good starting point to get out of debt and rebuild savings,” McClary said.

2. Make a Plan to Tackle Debt.

Plenty of consumers will be digging out of debt in the new year. Those surveyed by Experian expected to charge about a quarter of their holiday spending to a credit card. To quickly eliminate that debt, you need a plan.

“The worst thing you can ever do is plan to pay the minimum payments,” said McClary. “That debt may be around for the next holiday season, and may be in the way of planned purchases and activities.”

Ideally, you should aim to pay off your credit card balance in one to two months, he said. If you owe money on more than one credit card, he recommended using one of these two strategies: tackling the smallest balance first or paying off the card with the highest interest rate. “The process that is most motivating is the one that you should go with,” said McClary.

You might need to tighten your belt to wipe out your debt quickly. “Look at everyday spending to find ways to cut back to contribute more to debt repayment,” said Bethy Hardeman, chief consumer advocate at Credit Karma. You can also put yourself on a cash-only diet so you don’t rack up more debt as you’re trying to pay it off.

3. Put Extra Cash Toward It.

In addition to cutting back, look for ways to generate more cash in the new year to pay off your debt, or to rebuild savings you might have tapped to cover holiday spending.

If you loaded up on gifts this holiday season, you can make room for your new things by selling some older items online, said Farnoosh Torabi, a personal finance expert and Chase Slate financial education partner. “This will not only help declutter your space, but you can earn some extra cash to help pay down that December credit card balance.”

You can sell clothing and accessories at sites such as Thredup.com and Tradesy.com, which get a commission for reselling your items. Or you could try listing items for sale on Craigslist, or download the Poshmark app to your mobile phone.

4. Set up Automated Payments.

Nearly a quarter of adults surveyed by Experian said they’ve paid holiday shopping credit card charges late. Not only will you get hit with fees if you pay your credit card bills late, but your credit score will take a hit, according to the NFCC.

Torabi said you can avoid making late payments by setting up automated payments through your bank or card issuer.

If you plan to skip a payment because you can’t afford to pay your bill, McClary said you should call your credit card company first to see what remedies you can find together while your account is in good standing. “If you have good credit, there are plenty of options to give yourself some breathing room so your credit score doesn’t take a hit,” he said.

5. Transfer Balances.

Here’s an easy money tip to follow: If you have good credit, lower the cost of your holiday debt by transferring balances to a low-rate card.

Be sure you read the fine print, though, before accepting a balance transfer offer. Most balance transfer cards have waived interest, which means you’ll pay interest only on any remaining balances that haven’t been paid off at the end of the introductory period.

Transfer your high balance from holiday shopping to First Financial’s Visa Platinum Cash Plus Credit Card today!* Enjoy great low rates, no annual fees, and a 10-day grace period.** 

6. Develop a Support Network.

You won’t be the only one needing help getting your finances back on track after the holidays, Torabi said. So team up with someone else in a similar position to share your goals and keep each other accountable. “Hitting the reset button on your finances is more manageable and fun with the help of a friend,” she said.

Some people even create bill-paying clubs — similar to book clubs — to get together with others in debt to talk about the progress they’re making and offer support to one another, Griffin said.

7. Seek Professional Help.

If you’re really struggling to pay off the debt you owe, or need help getting your finances back on track, get advice from a professional. “Don’t be afraid to seek help,” Griffin said. It won’t affect your credit score or credit history, but it can help you manage debt, he said.

Also consider meeting with a financial representative if you tapped savings that were earmarked for things other than holiday spending. “If you’re raiding your short-term emergency savings or long-term retirement savings, there’s a bigger issue about priorities,” McClary said.

Here at First Financial, our first priority is helping you achieve your financial dreams by defining your dream goals and lifestyle, empowering you through financial education, building your wealth, planning your retirement, and managing your risk. Establishing financial goals is an important part of saving enough money, and being ready for the future and we are here for you! Stop into any one of our branches and sit with a representative to have a complimentary annual financial check-up for a review of your finances to get you back on track. 

8. Avoid Quick Fixes.

Even if your debt seems overwhelming, you should avoid companies that promise to help you settle debts for pennies on the dollar of what you owe. “It’s very tempting, but it’s also probably illegal,” Griffin said.

Debt-settlement firms might charge an upfront fee before providing any services. But Griffin said that firms promising credit repair have to fulfill the terms of their offer before taking any money.

9. Monitor Your Credit.

Holiday shopping has negatively affected the credit scores of 10 percent of consumers, according to the Experian survey. So it’s important to see where you stand by reviewing your credit report. Griffin said your score should include risk factors that are affecting your score and what areas you should focus on to help build your credit.

Another reason to monitor your credit report and your credit accounts closely after the holidays is to look for signs of fraud. If you see any unauthorized charges on your statement, contact your credit card issuer immediately to cancel your card and dispute the charges. Check your credit report for accounts you don’t recognize, which could be a sign that someone has used your identity to get credit in your name.

10. Start Saving for Next Year.

Help yourself avoid a holiday debt hangover next year by saving money throughout the year. Add up all of your holiday spending, and divide that total by 10 to determine how much you should set aside each month from January to October. That can help you save enough for when the holiday shopping season starts in November, McClary said.

If that monthly amount is too high, create a strategy to have a more affordable holiday season next year, he said. As you follow these steps to bounce back, try to stay positive.

“Patience is key — don’t get discouraged,” McClary

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