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Recouping From Summer Spending

There’s something about the summer sunshine that makes you want to let loose. It’s all fun and games until you get your credit card statement. 

If you spent more than you intended to over the summer, make a plan to pay off your summer debt now before you get into the holidays.

Take a look at the damage
This may be painful, but sit down and assess how much you spent. Also, keep in mind how much interest you’re paying monthly since it eats into a portion of your payment.

Review your budget
You may have a good idea of how much money you can put towards your debt each month, but a detailed look at your budget will give you an exact amount. 

Make sure you factor in paying yourself too. A budget without allowance for personal discretion is not sustainable. Your budget should also include a savings plan for holiday expenses to avoid adding additional debt in the near future. 

Automate your payment
Decide on the amount of the payment and make it automatic. Setting up your payments this way saves you time and keeps you committed to your plan. 

Create a savings plan for next summer
Once you’ve paid off your summer debt, start making a plan to save for next summer. If you can establish a routine of saving first for large expenses, you’ll avoid the vicious cycle of debt and save hundreds of dollars in unnecessary interest charges. 

A solid savings plan gives you the freedom to enjoy the moment without facing a cringe worthy financial aftermath.

Source: Wise Bread