St. Louis, MO (PRWEB) January 23, 2014
Four Seasons Financial Education (FSFE) today announced their top five methods of paying off holiday debt as part of Financial Wellness month. These debt payment methods have been the most popular among the employer groups the firm serves.
"We've seen what works and what doesn't," says CERTIFIED FINANCIAL PLANNER professional and member of FSFE, Danton Troyer. "We ultimately help people stay away from excess holiday spending, but when it happens, these tips help dig out of debt quickly."
1) Focus on high-interest rates - If numerous credit card balances exist, focus on the highest interest rate card, not the balances. Pay only the minimum required to all cards except the highest interest rate card.
2) Leave the cards at home - Credit card debt is toxic to financial goals. To avoid setbacks with college or retirement planning, do not use the credit cards any longer until the balances are paid.
3) Change spending habits - Determine which expenses are "needs" and which are "wants." Until no credit card balances exist, only "need" expenses are allowed in the budget.
4) Use lump-sums - If a holiday bonus was received or a tax return is expected, use all of these proceeds for lump-sum payments to debt. Although using this cash for entertainment or clothing would be more fun, paying down debts must be the focus.
5) Return unused items - If you purchased merchandise that isn't being used or received a gift that may just college dust, return it. If unused items lay around the home for four weeks without being touched, they may not be useful. Return them to pay down debt. If you end up needing this item in one year, buy it with cash if the cards have been paid off.
About Four Seasons Financial Education
Four Seasons Financial Education provides workplace financial wellness and education services to companies throughout the US in an effort to improve their bottom line. We take a strictly academic approach to financial education and focus on the core areas of personal finance, thereby seeking to increase employee productivity and organizational performance. Securities and advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.