Stop. Take a deep breath. That feeling of dread? It’s just the holiday spirit leaving your body with each passing breath. It’s your own fault… everyone knows not to look at the receipts on the day after!
If you were smart, you planned ahead. You created a holiday account at the beginning of the year so by the time November rolled around, you had cash on hand for cherry-picking the best deals.
If you were smart, you stuck to your budget and didn’t let stress, competition, irresistible deals, or last-minute price hikes to knock you off your plan. You made a list of people and charities you wanted to recognize, set a price per gift, stuck to your list, and got your shopping done early.
That’s if you were smart.
But if your candy cane and cookie euphoria is dissipating with every thought of your credit card statement, you’re not alone. It’s engrained in our culture: Thanksgiving is to overeating as Christmas is to overspending – lavish spending you’d never consider otherwise.
The pressure to GIVE is powerful; our senses may leave us entirely. When we shop, we anticipate the warm embrace and feeling of joy WE create when a gift is received. It’s awfully noble. But if you’re like me, today is the day you watch your kids and realize just how little use your gift will get (I will never buy a robotic pet again!).
So what’s next?
Budgets are fluid. They require constant reevaluation. If you overspent, it’s time to reconsider your budget for the coming months. You won’t be able to see any viable options without a clear picture. If you didn’t before, go back and write down what you spent.
Chances are, it’ll make you feel better. You’ll realize that, while you had a bad month for your budget, you aren’t completely out in the cold. Because, you see, most of the year… You were smart.
If you’re not feeling better, take solace knowing that it’s possible to mount a comeback.
A few years back, holiday spending tipped my credit card balances over the edge. I wasn’t smart. I thought I was – it makes sense to open up store credit cards to save 10%, right? Wrong. It wasn’t until too late that I realized I wouldn’t be able to make the minimum payments on so many cards.
I knew enough to see that with accumulating interest, everything I could afford to pay towards my various credit card bills would be going straight into the creditors’ pockets while my debt level remaind constant. Classic debt spiral.
What did I do? Consolidate. Debt consolidation sounds ominous, but it’s far worse for your credit to fall behind on payments. You can take advantage of low interest rates on balance transfers and merge your debt to one account, or seek a consolidation loan to pay off your principal balances. If you have good credit history, you may be able to achieve a lower interest payment or a longer payment period. Managable. You can handle that.
The moral of the story? I’ll say it again:
Stop. Take a breath. Enjoy what’s left of the holidays. You’ve got options.
Photo: TopGold
Thanks to Jennifer Willard for taking over the blog responsibilities today while Joe & OG search for more egg nog. Jennifer has a new blog, Crayons & Coins. She also writes for Credit Guard, a non-profit debt counseling company.
Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets. Joe holds B.A Degrees from The Citadel and Michigan State University.
Debt consolidation can be a life saver in many cases. It’s amazing that more people don’t do it before it becomes unmanageable.
Another option – start returning gifts or selling them while they’re still like new! Sure it’s not glamorous, but sometimes ya gotta do what ya gotta do…
If you bought your child a game and he opened it, buy some shrink wrap, put it around the game and blow dry it with warm air. It’ll look freshly shrink wrapped and Walmart will take it without a receipt.
I agree with Mrs. Pop! Sell the stuff. You probably don’t need any of it anyway!
I will admit that my wife and I probably spent to much this year but that was probably because of the new baby and got a little carried away. Not over what we can afford, just more than we should have spent.
I didn’t get carried away with gift buying but I did with food. Man I spent so much on food. But I think the best thing to do is face things head on and know what you’re dealing with! And make changes from there…
And such good food, too…
I find that having a plan usually stops any anxiety or concern about these kinds of issues. You need a plan to pay it off and a plan to avoid the same issue next year.
like with overeating it is certainly not fun to go on a money diet after the holiday extravaganza. I too would return the gifts, if possible.
The last part is the best – stop worrying and just enjoy what’s left of the Holidays. You didn’t spend all that money just to have a bad time 🙂
We mostly did not go over…but I did charge two major things….do I feel guilt no but I am definitely inspired to pay them off quickly. Great post! By the way Mr. CBB sent me over here!
Don’t let the payments stop you from enjoying the purchases!
Only way to stay on track is to break free from the status quo.
Forget buying gifts make gifts instead.
We made gift baskets for the family this year with chocolate covered strawberries and brownies and roasted pecans, etc. everyone loved their gift and it costs us less than $100.
You can’t spend like a defense contractor. You don’t have a no bid contract.
I didn’t spend too much, but people spent WAY too much on me. I went from feeling financially responsible to an asshole in 12 hours.
Guilt inspires more spending sprees for me than I’d like to admit. If there’s someone you often exchange gifts with, it can be helpful to set a budget beforehand. If that’s not an option, writing a thoughtful letter to accompany a gift can really increase the emotional value.
This year was pretty great for me. I didn’t spend a whole lot on gifts and what I did buy I only used cash. To top it off I was able to buy quite a few gifts from friends that are local artists and even a buddy that owns a micro brew. This may be one of the best holidays I have ever had as far as financials go, or otherwise, they always are great. But it was equally rewarding to be able to give the money I spent on gifts, that I would have eventually spent somewhere, to individuals I know and care about. It kinda just added something extra to the whole thing for me. But to be honest… I have had some pretty big holiday fails in my past.
Good advice! Spending can easily get out of hand during the Holidays.
We never shop huge for Christmas but go out after the holiday to find great deals. Over the next week or so we have a set budget and plan to stick to it.
We’re lucky that way, too. Our family Christmas is generally a day or two before New Year’s Day when we get home from visiting everyone else. So, we buy stuff that’s always marked down for each other.
I’ve only had post-holiday distress once, but you’re right – enjoy it, because it only happens once. The best thing to do is just regroup and focus again here next month.
Sounds like good dietary advice, too, Robert.
No distress here 🙂 and previously it was never season specific – my life was a nervous breakdown. Great post and sensible suggestion. I still can’t understand why after Christmas people flood to the shops for the sales? How much stuff can one accomodate? Oh, well…
Have a great 2013; Stay Calm and Keep Running :)!
You keep running too! I’m up over 100 days in a row now.
I spent at the high end of the range I wanted to be at this past holiday season. My guilt is eased by realizing that it was for kids, and not one penny was on me 🙂
Without a doubt, TTMK 🙂 It’s nice to bask in that excitement!