Watching Your Wallet: Getting out of debt for the holidays
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?
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.
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