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As the holidays drawn nearer, more stores are ringing in the holiday merchandise a lot sooner than ever before. The idea behind this holiday explosion during Halloween is to give families a bit of a break because so many have to stick to a strict budget. This allows parents and families some extra time to get the things they need without having to go on a chaotic shopping spree, using credit cards or overdrawing the bank.

But what happens when the holiday spirit moves you too much and you find you have drastically overspent your funds, especially when those funds are on credit?

There are several steps you can take to keep the money monkey off of your back and help you recover from a unplanned spending spree.

Learn Your Lesson

The first thing you want to learn is your lesson. Do not do it again. Always go shopping with a plan and a budget in mind. Do not head to the mall simply because you are bored. Only go if you have a specific mission. Christmas shopping is no exception. You need to plan your trip and have a list of how much you can afford to spend on each person’s gifts – not how much you WANT to spend on people’s gifts.

Don’t Avoid the Subject

You may feel ashamed or embarrassed about overspending but it does happen to the best of us. The only shame you need to feel is if you avoid the situation all together. Procrastinating will only make it worse. Gather your receipts and find out exactly how much you have spent and overspent. Make sure your bank account will not bounce, causing overdraft fees. Make sure you haven’t gone over the limit on your credit cards.

Pay the Bills Now

As soon as the credit card statement comes in – pay it. You’ll feel better having done something positive and you will avoid facing latte payment fees you can cause by avoiding the subject. Pay as much as you can toward to balances and add a little extra to make up for the extra spending you just did.

Switch Credit Card Companies

If you have several credit cards, take advantage of special offers for balance transfer cards, where you can roll over all of your balances onto one account. It will make it easier to pay off your credit card debts having one payment a month with more towards the balance than paying on 5 cards the minimum monthly payment. Before signing up for a new account, research the rates and rules for each balance transfer credit card available to you. Don’t just jump at the first offer. Understand fees and charges for transferring higher balances.

Get Prepared for Next Year

Having learned a fresh lesson, you can start planning now for next year. Put money into a Christmas club and shop early to avoid sprees. Work on a plan to avoid using credit cards altogether for next year.



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