Pero I can do it too


The holiday season is a time of joy, celebration, and togetherness. Giving feels so fulfilling but can leave many of us with a stressful aftermath of increased debt.


If you find yourself with holiday debt, do not worry- you are not alone. It is important to get strategic, and it is possible to pay it off fast.


In this post, we will cover strategies you can practice to release financial stress and start the year by clearing the holiday debt.


Step One: Assess the Debt


Before creating a plan to pay your debt, you must know how much debt you accrued during the holidays. Start by writing a list of holiday-related expenses, including gifts, travel, and decorations, to name a few.


This overview will be the foundation for choosing a repayment strategy that works for you.


Step Two: Create A Realistic Budget


Once you are aware of your holiday debt, it is time to create a budget. Make a list of all your monthly expenses and subtract it from your income. Be realistic and add fun to your budget because you must focus on enjoying life and not thinking of your debt daily. Of course, choose an amount in moderation that goes towards fun. Allocate a portion of your income to a holiday debt repayment plan.


Ask yourself: How many months do I want to repay the debt? Let’s say your answer is in 5 months, you owe $800 of holiday debt; then, you must send $160 a month to pay it off. Keep in mind this does not consider the interest you are accruing.


Celebrate each milestone in the debt repayment process and monitor your progress. You will feel motivated to continue on this journey.


Step Three: Prioritize High-Interest Debt


All debts are different.


In this case, a high-interest debt may take longer to pay off completely because it accumulates faster. Prioritize a high-interest debt to save money in the long run and to make the repayment less overwhelming. Make minimum payments to the rest of your debt and concentrate on the high interest first.


Step Four: Explore Balance Transfer Options


Consider transferring a high-interest debt to a new credit card that offers 0% interest. Many credit cards offer an introductory 0% APR promotions. This option allows you to relieve the pressure of high interest charges.


However, be mindful of transfer fees and pay off the credit card balance completely before the 0% interest APR period ends. Failing to pay it off might result in penalties, and the interest often accrues and will reflect once the period ends.


Step Five: Increase Your Income


The fastest way to pay off your debt is by increasing your income. You can increase your salary by negotiating your current salary, exploring different job opportunities, freelancing, starting a business, driving for Uber, or babysitting. The options are endless. Allocate the extra income toward the debt repayment plan, helping you expedite your journey to paying off your holiday debt.


Paying off holiday debt will require you to be strategic, planning, and disciplined. By assessing your debt, creating a budget, prioritizing high-interest debt, knowing there are balance transfer options, and increasing your income, you can take charge of your finances and get your life back.


Remember, have fun, stay consistent, and you are on your way to wiping the holiday debt you accrued. Give yourself grace, and the more kindness you give yourself, the clearer your brain will be to go into solution mode.


How did it look like for me:


As soon as I started working, I remember I went all out for Christmas. It did not click for me to see if I could afford my purchases. My instinct was, “Let me pay with my credit cards, and I will worry about it afterward.”


For many years, overspending for holiday gifts kept me in the loop of buying gifts in December and spending all of January through October paying it down just for December to come and do it all over again.


Now, I know how to manage my finances and understand how credit card interest works, where I can make a more responsible decision with my money.


When we work together:


  • I help you create a realistic budget that works for you
  • I help you understand how to elevate credit cards to work in your favor
  • I help you plan purchases you want to make without jeopardizing your peace and joy


If this resonates with you, I invite you to work with me! I want to help you make purchases that feel aligned with you without feeling guilty or getting yourself in debt. I want to help you build your dream life and not allow debt to set you back or wait until you pay off debt to build the life you’ve never seen your family experience. Book a sales call.


I want to help you level up!


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Orlenda Cortez

Welcome to my corner on the internet! I’m obsessed with using money as a tool because it led me to pay off $30K in consumer debt in a year and a half, helped me save $20K in nine months to have my dream wedding in Costa Rica and is helping me build the life I never saw my family experience. Now I want to help others do the same!

Orlenda Cortez
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