Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

How to Bounce Back from a Spending Hangover

January 12, 2017 at 5:00 AM

It’s that scary time of the year: Your December credit card statements start rolling in. I hope that you have everything under control and can pay off every balance in full. But if that’s not doable, I want you to promise me that you will be extra smart in how you take control of your spending hangover.

  • Don’t Settle for Paying The Minimum Due. Fight the temptation to only make the minimum payment due. Push yourself to pay more. That not only will save you money in the long haul-you’ll get the balance paid off faster-but it is such an empowering move: You are making the choice to do more than the minimum.
  • Get Into Full-Blown Trim Mode. Okay, if you are determined to pay more than the minimum, you need to come up with the cash to make it happen. Going on a “wants” diet for a few months might do the trick. Scale back your nights out with friends, or take a longer break between manis, pedis and haircuts. Add it up and you might find $100 or more extra in savings each month. I also want you to write down the cost of every subscription or monthly service you have. Anything you don’t use needs to be cancelled. Everything you keep needs to be trimmed. There is a cheaper cable package. There is a cheaper cell package.
  • Give yourself a Deadline. I hope you realize that the credit card company wants you to take forever to pay off the balance. Every month they get to collect interest is good business for them. And a lousy deal for you. The average interest rate is around 15%, and rates will continue to rise in 2017 if as expected the Federal Reserve continues to raise its target interest rate. The smart move if you can’t repay a balance in full is to commit to a payback period. When we set tangible goals we are more inclined to make it a priority. A credit card repayment calculator will tell you how much your monthly payments should be to have a balance paid off in the timeframe you choose.
  • Focus on Highest Cost Debt. If you have unpaid balances on multiple cards, you need a comprehensive strategy for how to attack. It’s really quite easy. 
    • The card that charges you the highest interest rate is your priority to get paid off first. So on that card you must pay more than the minimum due each and every month. The goal is to get rid of that balance ASAP. 
    • At the same time, just make sure you are sending in the minimum due on any other cards. 
    • Once you have paid off the entire balance on the first card, make the next card with the highest rate your new focus. Take all the money you were paying each month on your first card and plow it into the second card. Keep at it until that balance is paid off. And if there is a third card in the mix, just make the minimum payments. Once you get the second card paid off, follow the same strategy with the next card.

Tag Cloud

confidentinsurance yearly reviewclosing feescontribution paid vacationsidelinedstandard rategay marriage ban end Florida overspend on giftslousy investmentRichdon't cover cosmetic dentistrybuying a carlow-cost index mutual fundfour steps to retirement savings Inflation Benefitinterest on student loansschool college studentfinancial fearscreate new truthstudent loan repayment planno tax on withdrawlslet them have 50% controlrequire chore in exchange for allowancerent vs buybalance transfer teensFederal Reservemonthly dental insurance premiumnot enough life insurance4 Must Have Documents loan necessityHDHP's are good for youfiduciarypay high rate off firsthigh deductible health care planengaged in finances!00% tuition paidVeterinary Schoolraising mortgage rates Spendingalternative FICO scoreuniversal college access20 to 25 times annual incomepaid in fullFederal PLUS loangrandchild summer job IRA contributionRoth 401(k)don't derail retirement savingsmarriage inequalitystore credit cardsStudent Debtadult childrenignore 6 month grace period High FICO Score = Better Ratewrite new goallower rate40% toward financial goaltelevision hostcommunity banknot gender specific earn allowanceraise your deductibleinitial tax break protect loved ones gift up to 14,000secured carddon't blow tax refundswitch to spouse coverageage appropriate chorekids schedule paymentsdon't extend mortgage monthly benefit be true to yourselfshop online guaranteed level term policypay down car loanMarlo ThomasMoney Marketwives should be involved in retirementfinancial concernwould you decline a bonus30 year mortgage itemized deductionretirementLong Term Care Insurance Retirement Savingsmortgagemortgage interest tax deductionmoney vowsmarriage financial responsibilitywomen live longerCredit Card Interest Ratefile asapterm life insuranceaccelerate dental workdental discount planno sneaking in feesOne Wallet At A TimesavingsSelectQuote.comreduce withholdingfinancial goal phraseAmy Lacyetpay credit debt ASAPunder 18 financial giftavoid burn outdeath benefit 20 to 25 times annual incomefinancial argumentsderailed planultimate compounding giftcollege graduatebuy home you can affordproperty taxlower premiumBankruptcyFundsstaycationsummer job match income 401(k) ContributionsHDHP juggle multiple financial goalshigh down paymentlong term goalmake saving a pleasureteens and money10% donate to charitypay off debtone annual feeARMoverspend on nights outreal estate marketbuying car 2016get health insuranceovercome financial fearspremiumchildren's bookHSA tax savings15 year mortgagesocial security never insolventCollege of Veterinary Medicine15-year refinance dealTelepictureslive below your meansnegotiate points with bank or sellerdepreciating asset co-sign Holiday SeasonSchool of Social Workyours, mine & ourshighest possible benefit20% equityETF'semergency fund savingslong-term care premiumspresident Obamastudent loan repayment estimatorFICO Scoremanage student loansSuze Orman spouse Kathy Travisloved ones dependent on incomeFinancial Power of Attorneyknow before you owecommitritual scheduleMass MutualInterestStock InvestmentsIRA contribution gifted moneybad decisionsconsider roth 401(k)Student Debt CrisisSave Us Moneypay interest while in schoolGiftdon't charge a pennyPBS Specialsave moneylowest cost fund optionForeclosurecommunity collegeAuto Savings leave a legacyhome loan credit score below 740 bad retirement planningEmergency Savingsprovider of financial supportUniversity of Floridano fee transferbe kind to yourselfTeachFHA loan feesrepay student loanspay 100% cashjanuary billsAARPreduce interest ratepurely financial standpointhome related tax break bonus do not pay allowance for good behaviordangerous money seasonCombo Insurance ProductsNew York Lifecalculate dependents annual income needsis it kind?social security not going brokewaive home inspection bidCredit scoreroth iraMinor Children Forbes Top 10file taxes quicklyLoveLegal GuardianFederal Funds Ratecredit utilization rateSandy Hook Elementary SchoolBaby BoomersInvest for savings growthVital Documentsautomatic withdraw to savings is it necessaryBill and Pennyexercise reguarlystudent loan repaymentpercentage men widowed 75-84credit managementlow mileage discountdear suzedon't buy wantsbetter loan dealsCPI-Wtitle insuranceaffordabilityhealthy aging do you need life insuranceface your financial fear401Kenjoy saving refundmobile appheartacheraising interest ratesConventional loan PMIburn outonly offered while employed protect and provide for minor child closing costs 2% of loanhome buying budgetlower mortgage interestlow credit scoreSatisfyingprofessional advisorfinancial aidborrowing plan women outlive menholiday spendingautomatic paymentearn more on savingskid borrow firstAshley Springer3% debt transferred tax refund fraudFinal GoodbyeSuze Orman's Money Warswomen long term carelow down paymentannual cost of living adjustmentvalentines dayteach your child good money habitsplangift grandchild IRA contributionno retirement funds for down paymenthigh FICO scorebill paying prioritiesARM Cautionhousing marketSuze is my biggest mentorvalue moneyFinancial AwarenessFree Debt Eliminatormax employer matched 401(k) contributionno life insurance financially irresponsiblesuitableYoung Adult replace permanent life insurance with termbuy homeraise deductiblessame-sex marriageHDHP'sNewtownunsubsidized Stafford loanHigh Credit Scoreresponsiblecredit unionterm insurancebuy down costly legal open enrollment review gift not loancharges on credit cardhealthy gumspay more than minimumstay positiveinsurance mistakestrained relationshipfederal student loan deferment healthy youtaxesCiti Simplicity Card near historic lowsCommencement6 month waiting periodInfluential Celebrityverify wellness screening and programsCommunication Skills can you afford itMoney-Savingstandard deduction Financial Awareness Video FestivalFiscal ResponsibilityMortgage Credit Availability Indexmortgage brokerHolidayincrease retirement savingsworkaholicmoney-aware childgrandparent IRA contribution increase emergency savingsonly refinance if it payssame sex marriage band end Floridareduce monthly paymentFixed Rate Mortgageshorter payback periodretain separate credit cardsLTCi ASAPNew american Dream Changing LivesInfluentialsPost-DivorceCD'stax ID theftSuze changed my lifecredit reportEasy Life Insurance home insuranceCredit Card Rate Increasebudgetlong-term care advice for college graduates2016 adjust withholdinghigher monthly paymentstretch out haircut appointmentsconfident of solutiondon't defer interest paymentshigh credit score discountsocial securityFinancial Gift CliffStaffords this year have a fixed 6.8% interest rateUrbana-ChampaignHoliday Shoppingsetup automatic savings withdrawtake actiondeath benefit needs for familyincreased auto insurance premiumschedule vacationbetter loan ratesbreakdown projected monthly housing costlearn good financial choicespoint cost offset by savingscar buying mistakesprescription tierspring summer Alarm Clockget over life insurance phobiaget credit card3 bucket approachSwap Older Annuities or Life Insurance incentives for health care wellness screeningPay Off Debt Before RetirementGay Couplesback door Roth IRAback-to-school budgethome ownershipAARP Social security calculatorsmall changes retirement plancomparison shopping2016 adjust estimated taxemployer funding HSAFinancial Solutions For Youmental healthfocus on needsFinancial EducatorLong Term Care premiumsdoctor no longer in networkGraceFRAbest interest rateshome buying seasonraise insurance deductiblefinancing car Financial Cliffpublic service career student loan repayment dental savings planWall Streetzero rate transfer dealshigher insurance deductibleclosing disclosurenon conventional routerising home pricesFICO at least 720The Suze Orman ShowOverspendingPrime Rate Increase20% down payment avoid feesbest interest of investor10 year repayment plan meet monthly 2015 record year car sales20 year level term SelfishGoodbye8 month safety nethome budget after tax costidentity theftcredit cardstudent loan debtLifestyledoctors in networkpay down student loan debthealthy teethAccuQuote.comkeep a scheduleloan no longer than 36monthssave healthy retirement blood pressureaffordable premiumCory Bookerhigh premiumsprotect dependent Adequate Auto and Home Insuranceteach importance of helping othersPersonal FinanceBankfraudulent return3 savings buckets 740 credit scoredebt free20% down paymentWarner Bros Television Groupeliminate credit card debtno private loansretirment savingsstudentwomen longer life spanGiftsincrease retirement contribution ratemax employee matchlife insurance name trust as beneficiarySuze approvedno splurge Moneyidentity fraudsavings pleasure8 month emergency fundorigination feesDurable Power of Attorney for Health CareFinancial SystemPrime Rate Rise 2015Gay Rights50 over 50contribute household expenses worst financial mistakecut monthly cable billpeace of mindpreexisting condition not covered3 step financial road mapcommissionsno waiting periodFinancialmultiple lendersallowance taskHDHP/HSAno late fee graduationquick closingchildren under 18push yourself to save more for retirementhealthy retirement weightAmericans don't use all paid vacation timemaintain standard of livingHow To Build CreditDeath Benefitbecome member life insurancerefinancethree year car loanRevocable Living Trustresponsible with moneyHDHP's are not badpositiveLTCSuze Ormancost of capitalization calculatorverify retirement plan with HR or plan sponsorUniversity of Illinoisemergency fund unexpected expenseSuze Orman Scholarshipiffy incomesocial workfull retirement agetraditional vs roth 401(k)overspend on dining outCivil RightsFinancial Advicecostly insurance mistakeloan is giftCNBCLTC shoppingFICO credit score credit card mortgageis it necessary?Heartsecure creditadd teenBeautypublic service loan forgiveness programlower overall drug costbetter termsno negativityone credit cardcompare monthly expensesForbesautomate student loan paymentsloan big picture interest capitalizationprotect your familyMust Have Documentsapproved medical 100% tax-freePhyllis Shelton expert long-term careCOLAdebit cardsuccessdon't do five year car loanreal estate mistakesbig results Federal Stafford loananticipated salaryRetirement Income19 years cash flow problemalways use all paid time offpercentage of women widowed 75-84car loanSandy Hook Promisecar leasingdream schoolspeak new goalreferrals best loan deal dangerous retirement planis it true? adjust allocations Employer Matched Contributiondon't use allowance as bribecouple financesMother2015 financial roadmapemployer offered life insuranceRevocable Trustcnbc alarm clockretirement accountsrequired disclosureget the most out of social security age appropriate goalsEric Dodge dental insurance short term goal eight month living expense emotional stakesat worst still pay 75% benefitnew cardon't spend insurancespecial saving accountfocus on new truth compare provider pricingExhibitionStudent Loanmax benefit coveredWashingtonfinancial independencefamily save at least $100 monthlyescrowLong Term Care shoppingbe good exampledebtswitch to roth 401(k)no private loanmortgage disclosurepaying for collegeUS Tax Codecut monthly cellular billlower interest ratetoo expensive schoolpermanent life insurancelong term caredon't ignore open enrollmentWillpowerfulhome buying mistakesletter to suzeno interestphysical healthborrow each year, capitalization is going to pile up Most Influential Celebrities ListJose Rodriguezrollover2017 Taxes8 Rulesno apologyallowance


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel