What to Do When You Have Overspent at Christmas

The temptation of shelling out money during the festive season is very common. You do not want to leave any stone upturned to celebrate with full of spirit, and therefore you are likely to fall off your budget. Budgeting sets the direction of your spending, but the temptation comes in your way. Presents, parties and decoration are easy targets when it comes to blaming.

Post Christmas is not the time to think about where you overspent. You will have to immediately figure out how quickly you can come back on the track. Credit card bills, rent, utility expenses, and groceries, a long list is in front of you. You will be scratching your head pondering from where to start and how to start. Here is what you need to do to come back on the track after overspending at Christmas.

Create a budget

It can be tempting to throw in the towel for a couple of weeks, but it will worsen your financial condition. You should immediately get back to the practice of spending money according to your budget.
·         Look at your savings account to see how much you have to meet unforeseen expenditure.
·         Make a list of your expenses to examine where you can cut back on.
·         Get those items off your list that you do to seek fun and pleasure, for instance, night outs.
·         Prioritise your bills such as rent, mortgage payments, utility expenses, and other fixed charges.
Make sure that variable expenses do not demand more money than you have left after paying fixed expenses. Otherwise, budgeting will be worthless.

Rev up the size of your savings

Emergencies can catch you off guard at any moment. What if you encounter a big expense? Not always you can take out a loan to meet unexpected funds for one reason and the other. Therefore, you should try to transfer a small amount of your income every month to your savings account.
Financial experts suggest that you should transfer at least 10% of your gross income to the emergency cushion. Go ahead with a higher amount if you can. Consider it as your priority.

Bury your credit card

Popping your credit card in the bottom drawer of the cabinet is a nice idea after the festive season. The force of habit may account for swiping the credit card, and as a result, you will likely max out your credit card.
·         Try to use cash as much as possible. As long as you have cash in your hand, you know how much you need to spend.
·         Make a list of things you need to buy before shopping. You will not get confused with what you need to buy and what you do not need to buy.
·         Another benefit of going shopping without carrying your credit card is you may avoid overspending despite tempting to buy a lot of stuff you do not need.

Take out loans for bad credit with no guarantor

It is no wonder you come across an unexpected expenditure right after the celebration. If the amount is small, you can use your credit card provided you have not maxed it out. If you need a big amount, you will have to apply for a loan.
A bad credit rating causes hindrance, but a few direct lenders provide loans for bad credit with no guarantor at affordable interest rates. However, you need to bear the following points in mind:

·         Analyse your repayment capacity. Make sure that you will not struggle to pay off the debt after paying regular expenses.
·         Choose a lender that offers these loans at competitive interest rates despite an impaired credit standing.

Consider freelancing

If you want to revive the spirit of your financial condition, you need to find out ways to improve cash inflows. Building emergency cushion and meeting all regular expenses seem to be arduous after you have consumed a large chunk of money.
Therefore, try to grab a part-time job or pick some freelance projects. Of course, it will be hectic to manage along with your full-time job, but your hard work will pay you off.

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