News & Advice

Even if you started holiday shopping with a plan, sometimes the spirit of giving takes over. While that leaves your loved ones with great gifts, it also means you may start the new year in debt.  

If you spent more than you planned this holiday season, you can recover from shopping debt with a plan and discipline. Get your finances back on track with these tips. 

ASSESS YOUR FINANCIAL SITUATION

First, take a look at your financial situation as a whole. Look at how much you owe across all of your accounts and cards, take note of the associated interest rates, and consider your monthly expenses and minimum payment amounts. This will help you move forward with making a plan to pay off your debt. 

PAUSE YOUR UNNECESSARY PURCHASING 

Not buying unnecessary items might sound simple, but to make sure you can hold yourself accountable when cutting out extra spending, you need a strategy. Consider what small changes in your life you can make to save money. 

This could mean making your coffee at home, packing your lunch instead of eating out, and cutting out luxuries like massages or nail appointments. You can also look at all of your subscriptions and what they cost you each month. Consider pausing subscriptions for a few months or canceling altogether. When you think these things through, you’ll be less likely to give in and spend money on a whim. 

PLAN HOW TO PAY OFF YOUR DEBT 

Now you need a strategy. By pausing your extra purchasing, you’re already off to a great start. Often, a smart plan of action is to pay off credit card debt that accumulates the highest interest first. Pay more than the minimum payments when at all possible and always pay on time.  Paying more than the minimum will get you out of debt faster and means you’ll pay less interest in the long run. A credit counselor can also help you with this. 

USE ANY EXTRA INCOME YOU CAN 

Freelance work, tax return, a bonus from work — you can’t look at these as just extra money. Use any money you get outside of your regular paychecks wisely to chip away at your debt.

TAKE STEPS TO AVOID DEBT NEXT HOLIDAY SEASON 

It’s never too early to save for the holidays. Make sure your budget and financial goals for the year will allow you to not go into debt next holiday season. The last thing you want is to go into debt at the same time next year.

A great way to avoid going into holiday debt is taking advantage of our Christmas Savings Club Accounts. You can make deposits of any amount at any time from January 1 up to October 31 while enjoying competitive dividends and no monthly service charge. Then on Nov. 1, the money will be automatically transferred to your INOVA membership savings account for holiday shopping. 

Another way to avoid going into debt around the holidays is to shop early. When you see something you want to get someone for Christmas, buy it any time of the year during a great sale so you aren’t spending so much money all at one time of the year. Spreading out your spending can help your budget not take such a big hit all at once. 

LEARN HOW TO BE A SAVVY SHOPPER

Avoiding debt doesn’t have to mean not buying anything during the holiday season. If you’re strategic with your spending, you can still have an enjoyable holiday season. Now is the time to learn how to be a smart and savvy shopper so you don’t repeatedly go into debt during the holidays. 

Don’t buy items if you don’t know how you’ll pay them off. Take the time to compare prices, search for coupons, and learn the best time of year to buy certain things. You don’t have to wait for the holidays to do your shopping. 

EARN REWARDS WHILE SHOPPING 

Need help with budgeting or figuring out how to recover from debt? When you bank with us at INOVA Federal, we’re always within reach to help you accomplish your financial goals.

With our rewards program, we even help you make the most of your spending. 

Stop in and see us at one of our convenient locations, or visit us online to learn more about becoming a member or making the most of your membership.