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Bankruptcy holiday spending tips

On Behalf of | Oct 7, 2019 | Bankruptcy

Many people are starting to understand the benefits of undergoing bankruptcy. However, there are times when the process can make aspects of life challenging.

Navigating the holidays can be one of those times. Thankfully, there are a few things people can do to help ease the strain of bankruptcy during the holidays.

Budgeting is key

Budgeting is strongly encouraged for anyone, but especially for those undergoing bankruptcy. Having a proper budget in place can aid parties in making sure their expenses do not extend past their income, so they can avoid falling back into the same financial rut in the future. In general, people tend to spend more during the holidays than during the rest of the year, so creating a holiday budget and sticking to it can be extremely helpful. 

Secured credit may help

Considering that filers undergo bankruptcy in part to eliminate or reduce credit card debt, many people may be reluctant to open a new line of credit. However, certain credit types prove safer than others, and a secured credit card is one of them. A secured credit card requires a deposit, which helps protect the cardholder in the instance that he or she cannot pay the bill. It is important to note that the deposit amount is often the same as the credit limit.

Share the load

The holidays are a time that many families and friends celebrate together. As such, whether it be food or presents, there is usually an opportunity to spread the load. Parties may consider doing a Secret Santa or another form of a singular-gift exchange instead of purchasing gifts for everyone. Alternatively, those who usually cook full meals may choose to make the dinner potluck style.

Applying these tips can help in making the holidays a bit merrier than expected. Whether incorporating one or all, it is important to do so with a plan in mind and to stick to it.