Avoiding running up debt during the holidays

In Florida, it is common for people to go more deeply into debt during the holidays. It may be smarter for people to avoid using their credit cards to purchase gifts and to pay for holiday travel as much as they can so that they don’t get in over their heads.

People may want to start by determining what the holidays will cost and then create budgets. They should think about all of the people for whom they want to purchase gifts and list them. If the list is extensive, they should think about whittling it down and opting to give some people cards instead of gifts.

People should also estimate their holiday travel expenses so that they have an idea of how much it will cost. They should review how much they normally spend on bills in each month versus how much they bring home. They should try to keep their holiday spending within the amount of excess that they have. If the holiday budget far exceeds the difference between what they earn and their expenses, it is better for them to trim it than to run up credit card debt.

Many people become overwhelmed by their debts and are unable to repay what they owe. Chapter 13 bankruptcy may offer a way for people to be able to repay a portion of their debts over a period of three to five years. In Chapter 13 bankruptcy plans, the interest rate is set by the trustee and is often much lower than the interest that might otherwise be charged by the creditors. If people complete their repayment plans, they may have their remaining unsecured balances discharged so that they can have fresh financial starts. A bankruptcy lawyer may help clients to decide whether Chapter 13 bankruptcy is an appropriate choice for them.