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There are some very good reasons to carry credit card debt. Unfortunately, too many of us carry it for bad reasons.

But even when you go into debt for good reasons, it weighs you down. Limits you. Makes your life just that much harder.

Credit card debt is quite simply a strain on the finances.

I’ve been working for a few years myself trying to get out of credit card debt. I had been solidly on my way when we were slammed by some medical bills that wiped out all my progress and then some. It has taken a year to recover from that and get to where I feel as though I’m making progress again.

In the meantime, we’ve had to live more frugally than ever. Keeping up with all the bills becomes a struggle. The added debt was in a good cause, but dealing with it has been a strain.

What to do, what to do?

First thing to do is to live frugally as you try to get rid of the debt. Figure out what you can cut from your lifestyle to save money. There are many different ways to do this, such as eating out less, sticking to a paid-off car rather than replacing it, even cutting back on retirement savings.

With this extra money you need to work hard on paying off that debt. Do not pay the minimum. Even a tiny bit over that will be a help in the long run. The more you can pay, the sooner the debt will be gone.

Cutting back isn’t enough?

It may be time for a second job or taking a chance on a home business. You decide. But in any case, bringing in some more money is a great way to pay down your debt faster. It’s a big sacrifice, especially if your current job already takes up much of your time and leaves you feeling tired, but sometimes that is what it takes.

The home business option is not for those who need money immediately. There’s risk involved. You probably won’t earn significant amounts quickly. But it can also be a lot more fun.

Debt is a terrible thing in so many ways. It stresses relationships. It limits what you can do financially, even beyond what your current earning levels may do. It takes away money that you could use much more effectively. Once it becomes possible to rid yourself of debt, it is a very good idea to do so.

Technorati Tags: credit card debt, personal finance, money trouble, financial problems, too much debt

Many people are just about done Christmas shopping. Sadly, many have gone well out of budget. That’s so easy to do, of course.

If you’re still doing holiday shopping, take a look at where you are relative to your holiday budget. If things have gone overboard, figure out how you’re going to get it back under control. Better to do this now than to be paying off credit card bills for months and months in the new year.

If you’ve gone over budget and still have shopping to do, figure out if you can exchange things that are not within your budget. Perfect gift it may be, but is it worth the excess? It’s a personal decision, but good money management means you pay attention to these things and do what is necessary.

Get a little creative if budget is becoming a problem. Think of gifts you can give that involve more time and less money, for example. Make gifts. Grandparents often love framed photos of grandchildren, for example.

Don’t give in to the urge to spend to excess at this time of year. There are far more important things in life than great presents.

Technorati Tags: holiday budget, christmas budget, money, personal finance

Even with the holiday crunch there are some things you need to do to keep your finances in order for next year. Some will have more to do than others, but a little thought on your finances is always a good thing.

Flexible Spending Accounts

Take full advantage of these. Why not? You aren’t losing anything by it. In fact, you lose if you don’t. The money is gone if not used. So figure out what you need.
Check with your employer, however. Some allow you to incur expenses even into March.

Check on Your Retirement Contributions

401k, IRAs (traditional and/or Roth) and others. If you can put more in them, get it all taken care of now. You may have until April 15 for some of these, but now is not a bad time to start thinking and planning.

Charity

This is a great time of year to remember the less fortunate. Not only can it help to make the holiday season more special for the less fortunate, it’s your last chance for charitable contribution write-offs. So get busy and share.

Remember that giving all that old clutter in your house can count under charitable contributions too. This is one we’re working on right now in my home. Going through all the kids’ toys and figuring out which they don’t use anymore. Since we had those big fires here a while back the kids are feeling quite sympathetic with those who may have lost all their toys.

Can You Bunch Deductions?

Property taxes and other things may be better bunched into batches so that you can take the deductions every other year. If your deductions are less than the standard deduction you may want to research this and see if it will help.

Prepare now to take the best possible advantage of what’s out there for you. Consult with a tax advisor for the best results, and make your appointment now rather than finding out they’re booked for the rest of the year. A little planning can go a long way.

Technorati Tags: end of year, personal finance

You’ve probably gotten a fair start to your holiday shopping, or maybe even finished it. If you’re still shopping, it’s not too late to take another look at your shopping budget.

My husband and I used a very simple way to estimate what gifts would cost us this year. We looked up everything on Amazon.com. From that, we have a list of what we’re after and what it would cost online. Makes for easy price comparisons.

While not everything is available there, it did allow us to look at what it was we really wanted to buy, and what it would cost. Much better than adding up individual receipts to see where you’re at.

Many people go far overboard with their holiday shopping, and regret it as they pay the bills off for months to come. Improving your control over your shopping habits at this time of year can limit the damage you do to your finances.

Technorati Tags: christmas shopping budget, holiday shopping