Paying for Christmas begins

The Christmas blitz is over and now is the time to take stock of your Christmas debt. Did it all go on the credit card this year? Unfortunately, for many of us, it did. We probably spent more than we meant to, as is usually the case when we put the Christmas shopping on the card. When we get that statement next month, how will we go about paying for it?

Well, if you're planning on paying your minimum payment, expect it to take about 26 years to pay off your balances. The right way to do it would be to pay the entire balance, but most of us won't be able to do that. Second best is to pay as much of it as you can each month until it is wiped out. But if you can't afford to do that either, try adding just 1% of your principal balance to your minimum payment. You will decrease the balance each month and therefore, slow the accruing interest as well.

However, you plan to pay for your Christmas indulgences, here's wishing you financial health and a happy and solvent New Year!