It’s when you open the first credit card statement of the new year that you know the holidays are really over. Spending too much over the festive season is almost as traditional as roast turkey with all the trimmings, with a third of Canadians overspending on their holiday budget, according to a survey by financial firm Edward Jones. However, with a bit of self-discipline and planning, it is possible to pay off your holiday debt before next Christmas arrives. Here’s how:
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1. Know What You Need to Pay
The first step in paying off your debt is to determine how much debt you have. Do this by making a list of each credit card balance as well as the interest rate and the minimum you have to pay.

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2. Pay the Debts with the Highest Interest First
Focus on first paying the debts with the highest interest rates. The sooner you can get these out of the way, the more you’ll save on interest, and you can then use these savings to pay off your other debts too.
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For more expert money tips, don't miss 20 must-know habits of self-made millionaires.

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3. Transfer Your Balance to a Low Interest Card or Line of Credit
If you have to pay off several debts, it can become a nightmare keeping track of what to pay when. An easy solution is to transfer all your debts onto one card or line of credit and make only one payment.
Shop around and find a card with a low interest rate and low balance transfer fee.
Shop around and find a card with a low interest rate and low balance transfer fee.

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4. Pay More Than the Minimum
The longer you take to pay off your debt, the more you’ll be paying in interest. To reduce the amount of interest you’ll need to pay, try to pay more than the minimum amount due.

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5. Budget
Work out a detailed but realistic budget to see how much money you need and how much you can afford to pay toward your debts. The more detailed your budget is, the easier it will be to see where you can cut costs so that you have more to pay off your debts.
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Plus, make the most of your money in any one of these 10 great places where you can retire for under $2000 a month.

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6. Create a Payment Schedule
Draw up a schedule of when to make payments, based on when you have money coming in from your salary and other sources of income. If you don’t have the funds in your bank account yet, debit orders won’t go through, and you’ll waste money on extra bank charges.
Avoid wasting any more money with the top 17 ways you're shamelessly bleeding money.
Avoid wasting any more money with the top 17 ways you're shamelessly bleeding money.

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7. Pay as Early as Possible
Schedule your debt payments to happen on or just after payday, rather than waiting for the due date. The sooner you make payments, the less interest you’ll be charged.

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8. Pay Often
You don’t have to pay your credit card bill only once a month. If possible, make two payments a month or even weekly payments so you’ll pay off your debt more quickly.
You also won't want to miss these 12 costly mistakes that can ruin your retirement.
You also won't want to miss these 12 costly mistakes that can ruin your retirement.

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9. Keep Track
By keeping track of how many payments you’ve already made, you can see how much of a dent you’ve already made in that mountain of debt. It will keep you motivated to pay off the rest sooner too.

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10. Don’t Use Your Credit Card
If you use your credit cards for making payments, you’ll just rack up more debt. Take your card out of your wallet and leave it at home so you won’t be tempted to use it while shopping. If you have to, cut it up.
Want more saving advice? Don't miss 20 ways to save $1000 a month.
Want more saving advice? Don't miss 20 ways to save $1000 a month.

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11. Ask for a Lower Interest Rate
Your credit card provider may be willing to lower your interest rate for a certain period. All you need to do is ask. However, you’ll have more luck if you’re a long-time client with a good record of making payments on time.

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12. Use the Debt Snowball Method
The blog Financially Fit & Fabulous suggests that you use the debt snowball method, which will give you positive reinforcement. With this method, you pay the minimum amount on all your bills and then use whatever additional income you have to pay off the smallest bill.
Once that bill has been paid in full, use the amount that you would have paid toward it to start paying off the second smallest bill.
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Once that bill has been paid in full, use the amount that you would have paid toward it to start paying off the second smallest bill.
Plus, don't miss 13 simple tips for getting rich.

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13. Use Your Holiday Bonus and Cash Gifts Wisely
Instead of using your holiday bonus or cash gifts for some luxury purchase, use them to make a payment toward your debt. It will help you get out of debt faster, and you’ll soon be able to save enough for that luxury you’ve been coveting.
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14. Sell Unused Gift Cards
There are several websites where you can sell unused gift cards for cash. You may not get the full amount but what you do get is still better than using the gift card for something you don’t particularly want or need. Then use the cash for your debt repayments.

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15. Sell Unwanted Gifts
Among your gifts you’ll always find something that you don’t really want and that’s just going to gather dust. Sell it on an auction website such as eBay and pay the proceeds into your credit card bill.
If you're not sure where to start, check out our list of the 12 surprisingly valuable things lying around your house.
If you're not sure where to start, check out our list of the 12 surprisingly valuable things lying around your house.

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16. Find Extra Sources of Income
Find ways to make an extra bit of money on the side, whether it’s through part-time, renting out a room in your home on Airbnb, becoming an Uber driver or by making something and selling it on Etsy.
You can then use the extra income to pay off your debt and who knows, if you enjoy the sideline and are good at it, it may even become a new career.
You can then use the extra income to pay off your debt and who knows, if you enjoy the sideline and are good at it, it may even become a new career.

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17. Cut Back
Take stock of your spending habits and see where you can cut back. Do you really need to eat take-out for lunch if you can cook extra the night before and bring the leftovers to work? Living more simply and cheaply will leave you with extra money to use for debt repayments.

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18. Start a Rainy-Day Fund
Find a savings account that pays high interest rates and start a rainy-day fund. That way, when you need to pay for an emergency, you won’t need to use your credit card and rack up more debt.
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For even more money, check out 15 high paying jobs to consider doing on the side.

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19. Focus on the Long-Term
It may be hard to resist temptation when you see something that you really want. However, stay focused on the long-term goal of being debt free. Visualize what your life will be like once you don’t have to set aside money every month for paying off debts.
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You may also like: how to retire with millions.

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20. Promise Yourself a Reward
Tell yourself that as soon as your debts are paid off in full, you may have some kind of reward, like a gourmet dinner, a weekend getaway or a bottle of expensive perfume. It will help you stay motivated and committed and will give you something to look forward to. However, don’t choose a reward that will cause you to go into debt all over again!
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