Two magical words. Spring. Break. It’s the one holy grail week in the entire academic year where you can literally get away from your problems, and as far away as you want! It’s something you had impatiently waited for– the perfect time to escape finals stress and the depressing, endless winter blues. When it finally came you partied, and you partied hard. Maybe you splurged together with your friends, bought round-trip tickets for the sunny beaches of Cancun or Miami, or treated yourself with new clothes, great food, and fancy drinks. After all, you deserved it.
But now you’re back home. Vacation is over. The reality of your bills is setting in. Maybe you treated yourself a little too hard.
Crashing under a mountain of credit card payments is nothing like crashing under beach resort waves. It can feel like you are in a hopeless situation and drowning fast. But don’t panic! We’re here to help. Start with three basic steps:
First things first, you need to find out where exactly you spent all the money you don’t actually have. Did you max out one or two credit cards? Maybe you borrowed with a loan? Did you pay yourself from a future paycheck with a “PayDay Loan”? All these options have probably led to more than just a hit to your savings and now you’re left with more debt than holiday memories. Don’t worry, let’s prioritize with step two.
- Break It Down
Now that you have pinpointed what is causing the damage to your finances, you can start working towards a solution. There are several factors that can help you break down your mountain of debt into manageable pieces. You can organize your statements and fees by amount, due date, and interest rate. This can help you key in on the risk associated with each bill. For example, a large amount due in several months with a low-interest rate is a lower priority than a small amount due in several weeks with a high, compounding interest. That’s because the latter will damage your credit score more severely in a shorter amount of time. After you have your bills organized by these main factors, you can move on to the third and final step.
- Take Action
Once you have determined what immediate bills you need to pay that are unrelated to your debt, such as phone, electricity, and other utilities, you will have a budget that can be used exclusively for your debt. If possible, you should contact your credit card and loan companies to negotiate a different due date or a minimum payment that is easier on your savings. If you find yourself in a tough situation where you are unsure what to do, you can contact our team at Debt Reduction Services. We can negotiate with your creditors to decrease interest rates and get you lower, more manageable payments.
After paradise, your debt can turn your real life into a nightmare. But there is no need to worry if you can follow these three steps which will help you to define, analyze, and eliminate your debt. Even then, it can be difficult to figure out your next step all on your own. Contact us if you’re feeling lost or overwhelmed with your post-vacation debt, and we can help you sort out the mess so you can spend the summer relaxed and happy. You might even start looking forward to Spring Break 2020!