Five tips to get your credit card back in shape after the holiday season.

One of the best things about Christmas and the holidays is indulging in what you love, but one of the worst things about the New Year is dealing with the hangover.

Yes, that extra piece of Christmas pudding or holiday eating was wonderful, but it also meant that the New Year workout was that little bit more difficult.

The same sentiment applies when it comes to your holiday spending on a credit card so now is a great time to get your debts back in shape!

With most people now well and truly back at work, think of this article as a New Year workout plan for your finances.

Here are some tips that can help you get back on track!

Start a plastic diet

No, this doesn’t mean eating a salad of kale and credit cards. It means limiting the amount you spend on your credit cards after such a hectic period.

Chances are the holiday period took it out of your little plastic friend. Any loose expenses should be paid for with cash and ideally use paypass or eftpos so you can keep track of where your money goes.

It is all too easy to say this is a problem for “future you”, but “present you” should realise that the future doesn’t take too long to come around.

Get a budget

It sounds too easy, doesn’t it? The most difficult things always do!

With the first month of 2017 already behind us, if things keep going the way they are now, it will be 2018 by the time those credit cards get paid off!

One way to combat this inevitability is to make a budget and plan where your money goes. Check your credit cards and the required payments and make sure they are the first items targeted in any debt repayment plan.

Consolidate debt

When it comes to debts, different loans have different interest rates. The higher the interest rate, the more you pay the bank or finance provider.

High interest credit cards are so tempting in December, but so annoying in the new year. One way to get rid of them is to put all the debt together into one easily payable loan – i.e consolidate that debt.

Make those payments automated

If you think you are feeling the strain now, wait until the interest hits from missed payments.

One easy way to avoid this is to automate all your payments to the credit card company.

If this means missing the occasional party or amazing shopping trip then this is what you will need to do to set yourself up for a better financial future.

Get next Christmas in order

Now is the time to start your planning for next Christmas.

Ideally put a little away every now and again based on your budget for next Christmas so you have the funds available come December. It is far better to have your own money at hand rather than borrowing at high rates.

Remember, a credit card isn’t just for Christmas and neither is the bill that goes with one.

Be sensible and look after your finances in a way that doesn’t leave you stuck for next year’s holidays.