How to Recover from Holiday Spending

January is the month where most of us find ourselves a day late, and a dollar short! Here is how to recover quickly and get back on your feet.

Difficulty: Moderate

Instructions

Things You'll Need:

• A PC with an Internet connection
• Unwanted household items
• Your credit card statements
• A savings account

1. Take the time to review your credit card statements. Are they maxed after the holidays? If so, determine how much extra per month you will need to pay to bring them back to a reasonable balance, and start this month by paying this amount.

2. Make a New Year's resolution to save 10 percent of your paycheck every month. Start out at 5 percent if you have to in January, but make sure that you stick to this resolution in February.

3. Go through your home and identify items you no longer need. Sell them on eBay, Craigs List or hold a garage sale. Take the proceeds and use it to pay down credit card debt.

4. Set up a Christmas club account at your bank branch so that next Christmas will not hit you so hard. Have a small amount deducted out of each paycheck and set aside.

5. Call your credit card companies and see if you can negotiate a lower interest rate or have any late fees dropped.

6. Vow to make no new credit card purchases during the next 3 months. This will also save on new interest charges.

Tips & Warnings

• Be sure to monitor your bank balance on a daily basis. This will save on costly overdraft fees.