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Happy new year children kids 2017 text christmas card vintage - Illustration

The Holidays Are Over!

The holidays are over! And, now it is time to deal with the huge credit card bill or debt you may be facing in January. Time for you to get yourself financially fit and approach this problem rationally! Fortunately, you're not facing this alone. PrimeWay Federal Credit Union is here to help. Check out these four ways you can fix up your finances and have things right before summer.

Happy new year children kids 2017 text christmas card vintage - Illustration
1.) Budgeting advice
It's very tempting to make only the minimum payments on the credit card you used to buy gifts during the holidays. Unfortunately, it's also the best way to ensure you're in debt for the next couple of months,
Making minimum payments on credit cards prolongs the length of time you're in debt and spikes the total amount you pay, adding an extra $175 to a $10,000 balance at 21 percent APR.
What you need is an aggressive debt repayment plan. Instead of looking to pay the smallest amount possible, identify the most you can afford to pay. PrimeWay can help with informative guides and worksheets on household budgeting. Commit to an extreme budget until you make headway on the debt. Coming up with an extra $35 or $50 a month is tough, but it's the easiest way to get things moving.


2.) Refinancing major purchases
If you splurged on one or two major purchases, it may not be credit card debt you're facing. Car dealers sometimes offer incentives to entice people to buy cars as gifts during the holidays. Unfortunately, when you realize you're in over your head with a car payment, there's no undoing the deal.
PrimeWay can help. Our auto and other major purchase loans often feature rates that are better than dealerships. You may need to finance the purchase over a longer term, or you may need to restructure the loan to pay less now. Either way, you will more than likely find more favorable and flexible terms at with us than you will at the dealer.


4.) Personal loans
Instead of making dozens of minimum payments, focus your debt into one manageable plan through a debt consolidation. Amazingly, taking this step can save you money in the long run by lowering your interest rate and monthly payment commitment.
Collateral isn't necessary. All you need is some basic personal information and a willing partner, like PrimeWay. Our loan specialists can help you organize and simplify your payments, working toward a debt-free life.

SOURCES:
https://www.nerdwallet.com/blog/credit-cards/minimum-payment-credit-card/
https://www.igrad.com/articles/what-to-do-after-you-have-overspent-on-christmas
https://www.debt.org/consolidation/