In the month of December, gifts are given, and as we receive we spend as well on gifts parties, without saving a little for later; combined with this, most products go up in price when the new year starts.

As a result, we end up in the month of January without money and with everything more expensive. But that’s not all, because even this month, some more expenses have to be made than usual.

In this situation, there is nothing left to do but to borrow money or pawn our belongings, getting in debt, perhaps unable to recover our things, and suffering the next few months until stabilizing the family economy.

To avoid these problems this year, here are some tips for you to follow:

1.- Reserve a part of your holiday budget to settle or restructure debts, this way you remove a weight from your shoulders and at the same time free your income during the next year, avoiding being affected by the debts you have accumulated.

2.- Remember that one of the best financial strategies for your holiday spending to have a positive effect is to achieve a low level of indebtedness and preferably settle debt

3.- It is recommended that you choose to pay off that debt from which you can get out faster; this will have one less creditor or one less commitment to face in the future.

4.- Another alternative is to change creditors (person or institution owed money), that is, if you have a debt that involves very high interest, it is advisable to pay that debt and, if necessary, to change creditor switching to another one that allows you to have that debit in better conditions (less expensive or more bearable).

5.- If you are thinking of borrowing to face the financial commitments you have in the month of January, it is important to compare the different alternatives that exist. To do so, take into account how much I would end up paying in total over time and choose the one that suits you best.

6.- Not always the lowest interest rate turns out to be the cheapest option, because each institution has its own way of calculating the interest payable.
Credit

7.- Obtaining a credit involves having a debt and therefore, it should only be contracted in the event of a real emergency. If you are considering personal credit, consider the following observations:

  • Only in case of a real need, apply for a credit and plan the correct use of it in time.
  • Make your payments on time to avoid default interest.
  • Consult before hiring, the additional services they offer you, as this depends on the high or low interest collection.
  • In the event that a Financial Institution intervenes in the transaction, request the depreciation table for the appropriations, so that it can observe the amounts, forms of interest calculation and payment dates.
  • Pay attention to the full payment of the credit before taking out the loan.

8.- Another way to face the uphill financial struggle in January is to sell over the Internet those gifts that you did not like from Christmas, gifts that are not useful to you or that you already had. There are auction sites that can be of great help to get some money.