Does your wallet feel lighter after holiday gifts, gatherings and Black Friday shopping splurges? If so, you're not alone!
The National Retail Federation estimated that shoppers will spend a record average of $902 per person on holiday expenses in 2024. And, according to an Early Holiday Shopper Survey, more than 1 in 4 holiday shoppers plan to go into debt this season by carrying a credit card balance or using a buy now, pay later service.
If you're starting the new year feeling the pinch, now is the time to take action. Here are three ways to recover from the holiday spending blues and set yourself up for financial success in 2024.
1. Take a Good Hard Look at Your SpendingFirst, take time to assess and understand your financial standing. Review your credit card statements and account activity. Don't forget to account for subscriptions and buy now, pay later services that may hit your account at a later date.You can use Money Management, a free tool available through Wright-Patt Credit Union®'s (WPCU®) Mobile and Online Banking, to track and categorize your spending. With Money Management, you can see all your accounts, including those from other financial institutions, all in one place! 2. Make a Realistic Debt Pay-Off PlanOnce you know the numbers, you make a game plan to pay off any lingering holiday debt. There are a few ways to approach this:
First, take time to assess and understand your financial standing. Review your credit card statements and account activity. Don't forget to account for subscriptions and buy now, pay later services that may hit your account at a later date.
You can use Money Management, a free tool available through Wright-Patt Credit Union®'s (WPCU®) Mobile and Online Banking, to track and categorize your spending. With Money Management, you can see all your accounts, including those from other financial institutions, all in one place!
Once you know the numbers, you make a game plan to pay off any lingering holiday debt. There are a few ways to approach this:
Consolidate Wisely. If you have multiple high-interest-rate debts (such as retail credit cards), consider a WPCU personal loan to simplify your monthly payments and potentially reduce your rates.3. Build a Budget That Works for YouIf you're ready to take control of your finances once and for all, you need a budget. Think of your budget as a spending plan that tells you how much money you have, where it needs to go and how it can work for you and your goals. Plus, starting now gives you a leg up on planning for next year's holiday expenses, so you can enjoy the season stress-free. Check out this free budget worksheet as a starting point.
Consolidate Wisely. If you have multiple high-interest-rate debts (such as retail credit cards), consider a WPCU personal loan to simplify your monthly payments and potentially reduce your rates.
If you're ready to take control of your finances once and for all, you need a budget.
Think of your budget as a spending plan that tells you how much money you have, where it needs to go and how it can work for you and your goals. Plus, starting now gives you a leg up on planning for next year's holiday expenses, so you can enjoy the season stress-free. Check out this free budget worksheet as a starting point.
Did you know? You can meet one-on-one with a WPCU Financial Coach at your local Member Center to get personalized guidance for your goals, help with budgeting and a clearer view of your overall financial picture.
Schedule your appointment today and take the next step in your Financial Flexibility and Freedom® journey!