Watching Your Wallet: Getting out of debt for the holidays

Watching Your Wallet: Getting out of debt for the holidays
Published: Jan. 17, 2022 at 7:35 PM EST
Email This Link
Share on Pinterest
Share on LinkedIn

LANSING, Mich. (WILX) - According to MagnifyMoney, Holiday debt averaged more than $1,300 in 2020 -- a six year high.

So, how do you stop the cycle of going into debt each January?

Related: Watching Your Wallet: Should you take out a loan for holiday shopping?

Once you get your holiday debt paid off for this past year, don’t let the cycle start over again. Instead, start saving a little bit now for the 2022 Holiday season.

Cherry Dale, a financial coach with the Virginia Credit Union, said February or March would be a great time to try setting aside $50 a month.

“In a savings account not linked to your checking account, is my advice,” Dale said. “Where it’s automatic, taken from your payroll. Automatic, deducted into a little account off to the side, earning interest and then you’ll have it for next year.”

If you set aside $50 a month starting in March, that would be $400 you’d have by the end of October for you holiday spending in 2022.

More: Watching Your Wallet: Resolving to save money

Copyright 2022 WILX. All rights reserved.

Subscribe to our News 10 newsletter and receive the latest local news and weather straight to your email every morning.