Finanzas / Finances

Getting Back on Financial Track After the Holidays by MILAGROS S. JOHNSON

If you’re feeling the aftermath of your holiday spending, you’re not alone. Studies show that most Americans spend more than they could afford on holiday gifts, decorations and entertaining, leaving them financially-strapped in the new year. In fact, it is estimated that holiday debt load soared 24% from last year, the highest in the past eight years. If you are one of the ones feeling the financial pinch, ignoring the problem is not the answer. Rather, you must confront it and deal with it from the beginning (as early as January) to avoid another financial disaster as the bills start rolling in. First and foremost, put away your credit cards, especially if you’re one of the ones who used them for holiday (over)spending. Second, create a budget and be honest with it. List all of your monthly bills beginning with your household expenses from your mortgage/rent, utilities and groceries/food. You may want to include your car payment and car maintenance expenses in this category, especially if your vehicle is your only means of transportation to and from work. These are called survival bills because they provide you with shelter, heat and nutrition (and transportation if you need a car for transportation). The next thing you want to include are your credit card bills. You want to pay, at the very least, the minimum due each month to avoid it from having a negative impact on your credit rating. TIP: Put away your credit cards while you focus on getting yourself out of your holiday-debt. Third, make a list of your miscellaneous, non-essential bills (i.e., cable, subscriptions and memberships). You’ll be surprised to see in writing just how much of your budget is absorbed by them. You may want to consider canceling some of them while you focus on paying your survival and essential bills. Ask yourself, “Do I need it or do I want it,” when determining which (unnecessary) bills you need to eliminate. Another important step to take is to contact your utility companies and enter into an affordable monthly payment plan. With the increasing costs of utility bills these days, you want to stay afloat and avoid facing shutoff service after the moratorium ends. It’s better to pay anything, than nothing to avoid a higher balance as well. To avoid another financial holiday disaster in 2023, make sure that you stick to your monthly budget, and start saving what you can ‘realistically’ afford to set aside. A gift does not necessarily mean you having to spend money. Other affordable options are simply baking your favorite holiday cookies, or using your crafty talent to make a handmade gift. For many, a surprise visit by a loved one to enjoy a cup of coffee or tea, or an unexpected telephone call or holiday card with a personal note can bring that very someone just as much holiday joy. For more information, or to speak with a Consumer Specialist, call

(413) 787-6437 or email us at moci@springfieldcityhall.com.

MILAGROS S. JOHNSON is the Director of the Mayor’s Office of Consumer Information in Springfield, a Local Consumer Program funded by the Massachusetts Attorney General’s Office.

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