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Debt relief: Year-round approach to alleviating holiday debt

Christmas has come and gone for residents of Connecticut and elsewhere around the nation. However, for many, the bills of making that Christmas celebration merry are beginning to arrive. While some consumers were already struggling with their finances and in need of debt relief, the additional bills are not welcome at all.

Reports show that individuals go into debt for more than $1,000 on average at Christmas. Statistics also note that the average credit card debt per person is the highest it has been in a decade. When you consider that amount is now over $3,300, the added burden from holiday spending certainly does not help. Financial experts have offered one solution to avoid this scenario next year.

When a relatively large amount of money is needed for a specific time each year, it helps to save for that over a period of time. The simple approach to this is to set aside a portion of every paycheck toward the amount needed. First, consider how much will be spent on Christmas gifts next year. Then, divide that amount by how many times a person is paid.

For example, someone who is paid monthly should divide their total by 12. A person paid every other week would divide by 26, or if paid twice a month, divide by 24. Dividing the amount up over the course of a year makes it much easier to handle than trying to cover it at one time. Some strategies to accomplish this could include setting up a designated savings account for the funds or using automatic transfers.

While it may be wise to begin thinking of how to approach gift giving next season, it does not alleviate some people's needs for debt relief now. A Connecticut bankruptcy attorney can help individuals who are struggling financially and have a desire to turn things around. A knowledgeable lawyer will work with clients to develop a plan to get them back on track with their finances.

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