woman walking with shopping bags with christmas background.

The holiday season has arrived – And with it, advertisements galore for all the latest products. As the advertisers compete for your hard-earned dollars, you must take a close look at your finances to see where you stand before spending a dime. Assessing your debt and income standing will help you avoid digging yourself into a financial hole by the end of the holiday season. Consider the following factors to best determine if you have the funds for holiday spending before hitting the storefronts with your cards in hand.

Analyze Your Current Debt Totals

To determine where you are at when it comes to your financial standing, you must first take an honest look at your current debt totals. Add up the total balances on your credit cards and lines of credit to see how much debt you already have on your plate.

If your debt totals exceed your ability to repay the amounts by the statement deadlines, you could end up on the hook for interest payments that have the potential to increase your credit card balances across the board. Whenever you cannot pay your full balance by the due date, remember to calculate your upcoming interest charges as a part of your debt totals.

Pay Off Full Balances to Eliminate Interest Charges

Although there are no hard and fast numbers to consider when it comes to debt, you can compare the totals to the funds you have available to pay those accounts back down. In short, you should be able to pay off the full balance every month to avoid interest payments.

If you regularly keep a balance on your cards, you will need to watch out for residual interest charges, which occur between billing cycle dates. If you have transferred balances across credit accounts, you must also make sure you pay off those transfers by the grace period or the full deferred interest charges will end up on your balance. In the end, the safest way to ensure you avoid becoming saddled with excessive debt is by making the full balance payments every month.

Minimize Your Debt Loads to Balance Your Finances

When debt outweighs your ability to pay off your full balance totals, you should be diverting as much of your extra funds as possible to pay down those accounts in a timely manner. Throwing as much money as you can at your debt will save you from potentially paying thousands of dollars in interest to those credit companies. Once you have balanced your finances, you are free to start spending for the holidays, but be sure to use cash rather than credit to avoid ending up in the same situation as before.

Repair Your Credit with Help from Build My Scores

If you cannot escape from your debt and renew your finances in time for the holiday spending season, consider partnering up with the team at Build My Scores. With help from this dedicated credit repair team, you can regain control of your finances and start anew without debt standing in your way. To schedule a free consultation appointment, call 866-611-9532 today.