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3 Surefire Ways to Eliminate Holiday Debt

By: Michael Millington

With the holidays well behind us and tax time in full bloom, many people are dreading the idea of throwing their entire tax return into paying off debt accumulated in the singular month of December. Spending a lot of money on presents, travel, or other things holiday related can take an immediate toll on your credit and your financial abilities. However, even if you were unable to exhibit restraint during the holiday season, there are three surefire ways to get rid of your holiday debt in one fell swoop.


  • Use Your Tax Return

We’re not avoiding the obvious solution here. Many people have returns coming to them when tax time rolls around. Of course, the amount fluctuates based on income, dependants, where you live and more. However, if you use a credit card or take out a loan for the holidays, your return can put a major dent in your debt. Even if it doesn’t completely rid you of debt, it can make it so you only have one or two payments left to make on any given debt.


  • Use Your Bonus

We’re also not avoiding the not-so-obvious solution. Twelve months of solid work put in for your job, it’s common for you to be on the receiving end of a well deserved bonus. This can also be put towards your debt to help eliminate it. More useful than a tax return because you don’t have to wait for it to get to you. Of course, it makes sense to know if you will be receiving a bonus this year (bonuses are not always set in stone).


  • Use Your Savings

We’re also not avoiding the most hated option. Yes, you’ve spent time building your savings up for whatever reason. However if your debt is really becoming hard to handle, dipping into your savings won’t be the end of the world. Besides, you built it once, you can do so again. Without having to worry about your debt accruing fees for interest of late payments, you’ll be free to rebuild without the shadow of debt looming over you.