Keep these tips in mind when you’re planning a home office:
- Be sure it’s ergonomically correct
- Find the optimal location
- Consider used office furniture
- Incorporate lighting, plants and sound
While the hustle and bustle of the holiday season may be over, post-holiday debt is the gift that keeps on giving. Discover’s 2018 holiday shopping survey showed that credit cards were expected to be the most popular way to pay for holiday gifts, with 38 percent of survey respondents planning to charge most of their holiday gifts to credit. That’s up from 32 percent in 2017. If you charged your holiday expenses to a credit card, you could easily be stuck reminiscing over your purchases for months—or years—to come.
To avoid prolonging holiday debt stress, focus on paying your bills off at the start of the year. By going on a spending fast—or a holiday debt diet—you can eat away at your post-holiday debt and move on with your life. Sans the stress.
Holiday gifts may be the expense on your mind, but add in holiday travel, seasonal entertainment and the cost of decorating your home, and your holiday bill can surge. It’s a huge chunk of change by all accounts, but it’s not an insurmountable amount to pay off in four months.
If you’re ready to pay off your holiday debt for good, consider this monthly timeline that can leave you free of post-holiday debt by early May—just in time for the spring flowers to bloom:
Before you can tackle any problem (paying off holiday debt is no different) you must take stock of the situation. In this case, it’s how much you owe. Start by tallying up each of your holiday debt balances including credit card bills, balances owed on store cards and loans from family or friends.
Once you have your total debt amount, divide that figure by four to determine how much you need to pay monthly over the next 120 days.
The pain of paying off your holiday debt so quickly might have you on edge. If that’s the case, finding ways to earn more while reducing spending could help. Picking up a part-time job or more hours with your current employer can make your journey out of debt easier.
To avoid prolonging holiday debt stress, focus on paying your bills off at the start of the year.
By the time your third month hits, your holiday debt should be half gone. Congrats are in order, but don’t celebrate too hard. If you want to emerge debt-free, you must stay the course.
Continue saving more and spending less as you finish out your holiday debt diet. Try not to slack off as you near the goal; keep moving forward, and keep saving as much as you can.
As month four approaches, only a quarter of your original holiday debt should remain. Now is the time to really buckle down and pay off that post-holiday debt. Continue your reduced spending plan as long as you can, and avoid falling back into old, costly habits. The finish line is in sight.
After four months of hard work, you should be free of holiday debt and the burdens that come with it. What now, you ask?
If you want to avoid holiday debt next year, it’s best to start planning now. Using last year’s holiday spending as a baseline, start building a holiday savings cushion right away. If you have five months left to save $1,200 for next year’s holidays, for example, start saving $240 per month in a savings account ($1,200/5 months = $240). That’s about $60 per week.
Why should credit cards have all the fun?
Now you can earn cash back with your debit card.
Discover Bank, Member FDIC
When you’re ready to start paying for next holiday season’s expenses, consider using a rewards checking account for your purchases. With Discover Cashback Debit, for example, you can earn 1% cash back on up to $3,000 in debit card purchases each month.1 Use your cash back to avoid going into holiday debt, or if your holiday spending plan is on track, move your cashback bonus to savings to start working on your financial resolutions.
If you plan early and consider your payment method, you won’t have to pay off another round of holiday debt next year.
1 ATM transactions, the purchase of money orders or other cash equivalents, cash over portions of point-of-sale transactions, Peer-to-Peer (P2P) payments (such as Apple Pay Cash), and loan payments or account funding made with your debit card are not eligible for cash back rewards. In addition, purchases made using third-party payment accounts (services such as Venmo® and PayPal™, who also provide P2P payments) may not be eligible for cash back rewards. Apple, the Apple logo and Apple Pay are trademarks of Apple Inc., registered in the U.S. and other countries. Venmo and PayPal are registered trademarks of PayPal, Inc.
It all depends on your financial goals and how you plan to manage your money.
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Discover Bank, Member FDIC