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How to Recover from Holiday Spending
This holiday season set new spending records, with Americans spending more than ever before, according to Adobe Analytics. In fact, 36% of shoppers took on holiday debt, averaging $1,181, according to LendingTree. We asked Malia Turner, one of our Member Specialists, for her expert tips on how to recover from holiday spending. Here’s what she recommends:
1. How soon do I need to worry about my holiday spending debt?
Taking action right away is essential. Inaction can increase your stress as due dates get closer, so it's best to address holiday spending debt immediately to prevent it from snowballing
2. What are some ways that I can avoid stress from holiday spending?
Setting a monthly budget and acting on it immediately can help reduce the pressure of managing finances month-to-month. Planning ahead is key. Creating a Holiday Savings account or a 12-month add-on CD can give you a head start for next year's Christmas expenses. Our Add-On CDs allow for additional deposits, much like a savings account, but with a better interest rate. By setting aside your gift-giving budget for 2025 each month this year, you can avoid the holiday financial crunch.
3. What resources or options do you offer for those who are experiencing financial hardships in the beginning of the year?
Our members have the option to skip a payment twice yearly on their loans through our Skip-a-Pay program, which can be a great help if making the full payment isn't possible. There is a nominal fee for this service, a portion of which goes toward the KCUCares Foundation in support of hunger, housing, and financial wellness initiatives in our community. To qualify, the loan must be current and at least six prior payments must have been made.
4. What is debt consolidation and what are the benefits?
Thanks for asking! There are multiple benefits to debt consolidation! When someone has multiple loans and credit cards to pay monthly, consolidating those debts into a single loan can reduce their monthly payments, often by hundreds of dollars. Additionally, a lower interest rate is usually available, saving even more money. At Kitsap Credit Union, we have several avenues to achieve this:
Life can indeed get hectic, and it's easy to overlook payments. To stay on top of your obligations, consider using bill payment services within our Online Banking system. Setting up automatic payments directly with the companies you pay is another excellent strategy to ensure you're always on time with your payments. Plus, Online Banking offers many other great tools like Money Management and Goal Builder.
6. Who can I talk to that can help me plan my finances in 2025?
Here at Kitsap Credit Union, we partner with LPL Financial* for financial planning. Our members can meet with a Financial Advisor to explore various paths to achieve their financial goals, both now and in the future.
Start the year off on the right foot and get back on track with these strategies. Have questions? We’re here to help. Stop by a branch or give us a call today. Together it’s possible!
*Not Insured By NCUA or And Other Government Agency, Not Credit Union Guaranteed, Not Credit Union Deposits or Obligations May Lose Value
Federally insured by NCUA and Equal Housing Opportunity.
1. How soon do I need to worry about my holiday spending debt?
Taking action right away is essential. Inaction can increase your stress as due dates get closer, so it's best to address holiday spending debt immediately to prevent it from snowballing
2. What are some ways that I can avoid stress from holiday spending?
Setting a monthly budget and acting on it immediately can help reduce the pressure of managing finances month-to-month. Planning ahead is key. Creating a Holiday Savings account or a 12-month add-on CD can give you a head start for next year's Christmas expenses. Our Add-On CDs allow for additional deposits, much like a savings account, but with a better interest rate. By setting aside your gift-giving budget for 2025 each month this year, you can avoid the holiday financial crunch.
3. What resources or options do you offer for those who are experiencing financial hardships in the beginning of the year?
Our members have the option to skip a payment twice yearly on their loans through our Skip-a-Pay program, which can be a great help if making the full payment isn't possible. There is a nominal fee for this service, a portion of which goes toward the KCUCares Foundation in support of hunger, housing, and financial wellness initiatives in our community. To qualify, the loan must be current and at least six prior payments must have been made.
4. What is debt consolidation and what are the benefits?
Thanks for asking! There are multiple benefits to debt consolidation! When someone has multiple loans and credit cards to pay monthly, consolidating those debts into a single loan can reduce their monthly payments, often by hundreds of dollars. Additionally, a lower interest rate is usually available, saving even more money. At Kitsap Credit Union, we have several avenues to achieve this:
-
- Home Equity Loan or Line of Credit: This option typically offers the lowest interest and the longest term that harnesses the available equity in your home to help consolidate your debt.
- Low-Interest VISA Cards: This option can save the significant amounts in interest payments. I usually work with the member to determine how much they can pay off in 12 months and do a balance transfer for that amount onto a new VISA with us.
- Personal Loan: The remaining balance can be placed on a Home Equity or a personal loan
Life can indeed get hectic, and it's easy to overlook payments. To stay on top of your obligations, consider using bill payment services within our Online Banking system. Setting up automatic payments directly with the companies you pay is another excellent strategy to ensure you're always on time with your payments. Plus, Online Banking offers many other great tools like Money Management and Goal Builder.
6. Who can I talk to that can help me plan my finances in 2025?
Here at Kitsap Credit Union, we partner with LPL Financial* for financial planning. Our members can meet with a Financial Advisor to explore various paths to achieve their financial goals, both now and in the future.
Start the year off on the right foot and get back on track with these strategies. Have questions? We’re here to help. Stop by a branch or give us a call today. Together it’s possible!
*Not Insured By NCUA or And Other Government Agency, Not Credit Union Guaranteed, Not Credit Union Deposits or Obligations May Lose Value
Federally insured by NCUA and Equal Housing Opportunity.
January 13, 2025