Money management gets finances back on track after holidays Published Jan. 18, 2011 By Kathleen Garrett Goodfellow Airman and Family Readiness Center GOODFELLOW AIR FORCE BASE, Texas - -- The holidays are over and things went off without a hitch. The family is with their presents and there you sit, feeling paralyzed and dumbstruck, with a pile of receipts and credit card bills that could sink the Titanic. Yes, it's time to put together a plan to pay off those debts, and then work that plan. Here are a few tips to help overcome the anxiety of being in debt and to get those debts paid off. Anyone can do it, they just need a plan. Take stock: Even though the holidays are over, there are still birthdays, showers and other special events coming that require gifts. Use this time to re-gift. That great kitchen "gadget" or bath set received during the holidays could be re-gifted to a friend. Re-gifting of nice, unopened items is a common practice and allows people to skip the hassle of returning. Put those unwanted, unneeded gifts in the closet and pull them out as needed. This saves shopping time and money. Cut up store rewards cards: That department store card you signed up for only to get the extra 10 percent off a purchase is too tempting if kept it in the wallet. If there are no additional discounts with the store rewards card, cut them up. Having too many credit cards can lower a credit score and make getting additional credit in the future more difficult. Manage current credit cards: There are many money management programs out there that help people get organized. They also teach people how to keep track of their progress in paying off debts and how to stay within their spending plan. In fact, most banks have programs built into their websites that automatically categorize every check written and debit card purchase. This can help people take a look at their spending habits and manage their money better. People need to manage their money instead of letting their money manage them. Pay more: Paying the minimum amount on any credit card offers more cash on hand, but the additional interest paid is essentially money down the toilet. Paying additional amounts over the minimum due can reduce debt faster and reduce the money wasted on interest. Try using tax return money toward paying off a credit card debt. Once the holiday debt is paid off, make it a steadfast rule to no longer charge more on credit cards than what can be paid off in full when the bill comes due. Understand the situation: Once you've have taken stock, cut up unused credit cards and started managing your money, determine where you are in your financial planning. If a person is repeatedly overspending his assets after a couple of months, then it's probably time to seek help from a financial consultant at the Airmen and Family Readiness Center. They can provide ideas on how to spend less, manage dollars wisely and ultimately help people become financially successful.
