If improving your financial situation is one of your goals in the coming year, dealing with debt is a key issue – and it’s essential if you want to gain more control over your personal finances.
A recent survey found that over a third (35%) of consumers ran up an average of $1,249 in debt over the holiday season, and parents with young children borrowed the most.
The survey, which was from LendingTree, found that holiday spending increased in 2021. The pandemic resulted in a drop in spending in the previous year due to fewer large celebrations and restrictions on domestic and international travel.
In 2021, parents with children under 18 and millennials were the most likely to be in debt, with both groups borrowing an average of $1,462.
The most common form of debt for parents was buy now, pay later (BNPL), and this accounted for nearly 40% of the total debt taken out by those surveyed. Nearly two-thirds of parents with young children used BNPL this holiday season.
In addition to this, 62% of shoppers made purchases on a credit card, and 33% used a personal loan to pay for items needed for the holidays.
For anyone in short or long-term debt, it’s important not to get stuck in a cycle. Here are some of the ways you can get your finances in check this year:
The first step is to make a plan, starting with making a list of everything you owe and your creditors. Then, you can put them in order of importance, starting with priority debts, which includes things like:
After doing this, you can list your non-priority debts, such as:
Next, you need to make a weekly or monthly budget to see what your income and expenses are. A budget will show you how much disposable income you have and how much money you have available to offer your creditors.
After working out your budget, speak to your creditors and make a realistic, affordable offer to repay your debts – just make sure you can stick to it.
Lastly, if you’re struggling with debt, it’s important to get independent debt advice. This could be a charity, or a government or private organization, depending on your needs and your country of residence.
The United States saw a small but encouraging improvement in its stillbirth rate last…
For decades, Apple has built its reputation on polished design, groundbreaking products, and a sense…
For the first time in decades, the United States has chosen not to formally…
Halloween candy lovers may notice something different this year — higher prices, smaller portions,…
Artificial intelligence is evolving rapidly, reshaping how people interact with technology — and even…
September’s Consumer Price Index report revealed that while inflation pressures remain uneven, some key…