Tips on how to become debt free by tackling those hefty holiday bills

Bulky balances from those hefty holiday credit card bills are enough to depress anyone this time of year.

One month after the Christmas season, they’ve begun appearing in inboxes or are being delivered by Canada Post.

The Better Business Bureau is out with some tips on how to get back in the black.

First and foremost, start with a good household budget.

Experts say you’ll want to adjust your expenses to find extra capital to pay down credit card and revolving debt.

Anyone who needs help in preparing that, whether it’s a business or a financial advisor, should talk to the BBB first.

“Consumers who are looking to tackle their financial debt are encouraged to check with the BBB for credible businesses they can trust to put them on the right track to their goals,” President and CEO of the BBB serving Southern Alberta and East Kootenay said. “Learning to budget and actually stick to that budget is a key component to creating a financially secure future.”

Crozier-McKee explained you’ll then want to choose a method on how you want to pay off your debt.

Experts suggest the ladder method where you pay off those balances that have the higher interest rate first.

There’s also the snowball method where you pay off the smaller balances.

Both, she said, are acceptable because, either way, you are moving in the right direction.

Consumers can also ask for lower rates.

According to the BBB, credit card companies will offer lower rates when asked as part of a “hardship plan,” so more payments can go towards paying off the principle instead of only the interest.

Send extra payments and stick to the plan.

They admit it can be tempting to use your cards once the balances are lower but in the end, it makes it more difficult to eliminate your debt.

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