Financial Tips to Do Better

Night's fallen, your stomach is growling, and the temptation of a fridge packed full of leftover turkey, potatoes, and delicious veggies is a tempting siren call. There's comfort in those leftovers; they stretch a festive feast just a little further, take care of lazy meals, and remind you of all the fun you had.

There's nothing wrong with savoring some Thanksgiving leftovers, but financial leftovers go old quick. Scrape the plate clean. High-interest debt is a lot less satisfying than a slice of pecan pie.

Here's how to keep leftover debt, like credit card balances, from spoiling your budget and finances.

Stop Reheating Your Debt.

Turkey reheats well; roast it in the oven with a little dressing, or fry it off in a pan. My mouth's watering already. Debt doesn't; it's like fish in the microwave.

Every time you carry a balance on a credit card, interest piles on, and that leftover balance grows a little larger.

Let's say you owe $1,000 on a credit card, you had to fix your car after unforeseen maintenance. Well, with a 20% APR, by only meeting your minimum payments, you're going to pay around $200 in interest over the course of the year. That's money you could have shoved in your savings, on other bills, or to spoil yourself.

When you "reheat" debt month after month, you're not getting anything new in return you’re just paying the same balance repeatedly.

Tips to Get Ahead on Credit Card Debt:

• Pay more than the minimum balance each month.
• Apply windfalls, like tax refunds or end-of-year bonuses, toward your highest-interest debt.
• Avoid adding new charges to existing balances while paying them down.

Small changes like these can break the cycle and prevent your debt from continually reheating.

Throw It Away

Consolidating multiple high-interest balances into one lower-rate loan makes repayment simpler and less stressful. You'll have one predictable payment, one due date, and a clear path to becoming debt-free.

Why Debt Consolidation Works:

• Simplifies your finances: Combines multiple credit card or loan payments into a single, manageable monthly payment.
• Reduces total interest paid: Transferring high-interest balances to a lower-rate loan will instantly reduce your interest payments.
• Creates a payoff plan: With a defined loan term, you'll know exactly when you'll be finished, no revolving balance that lingers indefinitely.

It's like wiping down the counters and putting the dishes away. Once the clutter is gone, you can breathe easier and enjoy the season without financial stress hanging over you.

Debt Consolidation Options:

• Debt Consolidation Loans: Roll multiple balances into a single, lower-rate personal loan. With a set payoff date and fixed rates, you'll eliminate the balances quicker and pay less interest.
• Credit Card Balance Transfers: Move your higher-rate credit card balances to a lower-rate credit union card. Your monthly interest charges will decrease immediately. When you sign up for a card at Atlantic, you can enjoy a low introductory rate!

Consolidating debt before the holidays can help reduce financial stress and set you up to start the new year on solid ground.

Cooking Up a Personal Loan

Unlike credit cards, which allow balances to roll over and interest to compound, these loans come with clear terms, predictable payments, and a built-in finish line.

How Personal Loans Help Eliminate Debt Faster:

• Predictable monthly payments: You'll always know how much you need to budget each month.
• Defined end date: A clear payoff timeline lets you see the finish line from the start.
• Stable rates: Fixed rates stay the same for the life of the loan, giving you peace of mind even when credit card rates fluctuate.

Once the loan is paid off, it's done. No revolving balance, no leftover interest, no endless reheating. It's a complete, satisfying finish.

That's what makes debt consolidation and personal loans such powerful tools. They simplify repayment and replace uncertainty with confidence. You'll move from feeling weighed down by "leftovers" to feeling organized, in control, and ready for a fresh start in the new year. Our team at Atlantic can help you find the best solution for your situation!

Stay Full, Don't Waste

While paying down debt is important, avoiding new debt is just as crucial. The holidays are full of spending temptations, but staying intentional helps prevent you from accruing more debt.

Quick Tips to Try:

• Set a holiday budget early: Break your holiday budget into categories and decide how much you'll spend on gifts, food, and travel and stick to it. Get in the gift giving season without breaking the bank: Dreading Holiday Shopping? Don't Let the Holiday Season Empty Your Savings!
• Use a separate account for seasonal expenses: One of the easiest and most effective ways to manage holiday expenses is by opening a separate account. You can quickly track how much you've spent and avoid accidentally spending money earmarked for bills and loan payments.
• Plan for next year now: Set up a Holiday Savings Account at the credit union so you can save a little each month for next season's celebrations.

Learn more tips to avoid holiday debt by reading How to Make the Most of the Holidays without Ruining Your Finances

TLDR:

Thanksgiving leftovers are delicious, but financial leftovers like high-interest debt are best avoided. To prevent debt from spoiling your budget, don't let credit card balances pile up. Try paying more than the minimum and avoid adding new charges. Debt consolidation can simplify and reduce stress by combining multiple high-interest balances into one lower-rate loan, offering clear terms and predictable payments. To avoid accruing new debt during the holidays, set a budget, use a separate account for seasonal expenses, and start saving for next year now.

We're Here to Help!

Thanksgiving leftovers may be a treat, but revolving debt can leave a bad taste long after the holidays. Fortunately, you don't have to carry it into the new year. By consolidating high-interest balances now, you can clear your financial plate and start fresh.

If you want to learn more about debt consolidation and how it can immediately save you money, we're happy to help. Please stop by any of our convenient branch locations or call 800-834-0432 to speak with a team member today.

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The Atlantic Financial Tips to Do Better strives to deliver informative, relevant, and sometimes fun financial information. If you enjoyed this article, please forward it to a friend.

Each individual's financial situation is unique, and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.