Bankruptcy can take its toll at any time, but especially during the holiday season. During months notorious for increased spending, it can be challenging not to participate.
However, when undergoing bankruptcy proceedings, a spike in spending is highly discouraged. Thankfully, there are a few things you can do to help navigate the holidays during a bankruptcy.
A budget is a great aid in managing finances. It helps you take a bird’s eye view of your spending. Particularly in the case of the holidays, a budget may help you determine where you may be able to cut back or save to put towards your holiday spending. Using credit wisely can also be a benefit, and experts strongly suggest opening a secured credit card account. It is important to note it is best to wait until all debts are discharged before applying for new credit cards, and it may be easier to obtain one after a Chapter 7 bankruptcy versus a Chapter 13.
Do not overburden yourself or your pockets. Look for ways to spread the responsibility of cooking and gift giving. You can try potluck dinners and secret Santa gift giving. There are also various apps that help you save money by setting funds aside or finding deals and discounts. At the end of the day, you want to work smarter, not harder.
Do not stress, as it can lead to spending. While some studies state that those under stress choose to spend more wisely on important items, others state that stress may cause unwise spending. In either case, parties tend to spend more than they may need to. Plan ahead, and utilize available resources to cut down on spending. Also, try to maintain positive thoughts. This will not only help your emotional state, but can also aid you in thinking clearly.
By incorporating these tips during holidays, you can remain on the right track towards financial freedom. Consider how these and other money-saving strategies may fit into your life for the holidays and beyond.