We do a lot of overindulging during the holidays. We take an extra day off work, eat an extra piece (or two) of pie, and sometimes charge more than we can afford on our credit cards.

As the holidays wrap up and post-holiday credit card bills start rolling in, it’s time to create a plan to pay off any debt we may have incurred during the holidays.

Cut Back on Spending

The first step in getting out of debt is to stop borrowing. If you overspent during the holidays you need to cut back your post-holiday spending.

The fastest way to do it is to consider a no spend day. That might be enough to get you back on track. It may also help to lock your credit cards in a safe place – to help avoid temptation.

Create a Payment Plan

If you have debts on more than one credit card, either pay off the card with the highest interest rate first and work your way down to the card with the lowest rate, or pay off the smallest loan first and work your way up to the largest.

Once you’ve paid off your debts

Don’t give in to the temptation to start over-spending again.

Instead, take the money you were paying each month on your debts and begin to save it. Better yet, save it automatically. That will give you a financial cushion the next time an emergency strikes.

Plan for Next Holiday Season

Start saving now to avoid debt next holiday season. Take a look at what you spent the last few months on gifts, travel, food and other holiday related items. Divide that amount by 12 and put that much away in a savings account.

At the end of the day, like with most debts acquired, its beneficial to look back on what you received in exchange for the debt.

Be grateful for the item. Be grateful for the debt, and get startred to putting your life back together.

To your success!