Blog, Debt

The Best Guide to Paying Off Christmas Debt

It’s the most wonderful time of the year! That time of year where pretty much all of us collect a large sum of the dreaded debt. We do it for the happiness of our families, but we end up dreading the after Christmas payments because they get harder to pay off each and every month. So how can we fix this? Continue reading for the best guide to paying off Christmas debt!

Pay off Debt Faster Using Rakuten

If you haven’t bought everything you need yet for Christmas, consider buying through Rakuten!

Rakuten is a buyers platform that allows you to get cash back when you go through their website. All you have to do is sign up, then click the store you’d like to buy from! The site automatically gives you cash back and mails you a check every few months. Easy as that! We all know we shop, and this year’s online shopping has been insane for me, personally. But, with Rakuten, I was able to save 5-10% off most sites and have that cash come straight back to me!

How can buying stuff help you pay off your debt? Well, every few months I get a large check in the mail (depending on how much I’ve online shopped) and apply that check straight to my debt!

Sell Second-hand Clothes on PoshMark

PoshMark is a selling platform that lets you sell your used clothes. Let’s be honest- we all have a bunch of clothes in our closet that we definitely don’t wear anymore. We keep telling ourselves that we will, but if we are true to ourselves- we definitely won’t. I started selling on PoshMark for fun, just to make some extra money on the side. But when I realized just how much I could be making, I decided to get more serious about it and have made almost two figures on the app. It’s hard work and definitely can be a real job or just a side hustle. But with enough effort, you could be making in the thousands and applying that money to your debt- reducing it by a significant amount!

Check out my PoshMark closet: https://poshmark.com/closet/sjzeibak

Create a Plan to Pay off Debt

This may seem like a simple one, but it was the only one that really helped me. Paying off debt is hard because we decide to pay it off- pay the minimum monthly, but continue to charge purchases on the card. It’s an endless cycle. So what can be do? Create a plan!

Part of this plan includes:

  1. Stop using the card
  2. Pay more than the minimum payment
  3. Pay off the highest interest debt first
  4. Delete credit card info off online stores

These four tips will be the best things to follow in erasing debt. Deleting credit card info from online stores is important since having it saved makes it so much easier for you to do that midnight purchase that you actually don’t need and wouldn’t have bought if it was anytime of day (I’ve done this more times than I’d like to admit). Another tip is to pay off the highest interest debt first. I don’t know how to stress how important this is. You’ll end up paying so much less in interest rate if you pay off this debt first- even if it’s the highest amount or lowest amount. And lastly, stop using the card and pay off more than the minimum amount. Both are pretty self-explanatory.

Side Hustle like You’ve Never Side Hustled Before

Get that second job, get that third job, get that online job. Do whatever you need to do- without burning yourself of course- to pay off that debt. Paying off your debt is important, but your health is more important. Since most of us are staying home due to the pandemic, there have been more online job opportunities than ever before! Jump on those opportunities. Do you have a special skill? Capitalize on it. Do you love technology? Work customer service for a high tech company. Do you love baking? Start baking little treats and advertise it in your neighborhood FaceBook group. You’d be surprised (and humbled) at how many people are wanting to help others now more than ever. A family in our FaceBook group advertised that their father was a great plumber and it just so happened our house needed a plumber to come check a leak. Instead of waiting for a company to send someone out and pay an outrageous amount for them to say they need to buy a part before they can fix it, we asked him to come over and check it out and paid him his fair prices. It was a win-win!

There are so many ways you can pay off that Christmas debt fast- but I believe the above are tried and true ways to actually see that large amount decrease fast!

What are your secrets to decreasing debt?

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