The holidays can be a time of family and great joy. It can also be a time of great spending. For those in the process of a bankruptcy, this can pose an issue.
Whether you are currently undergoing a bankruptcy or contemplating it, having a plan may help to put your mind at ease. There are a few things you can do that may aid you in making the most of the holidays during the bankruptcy process.
Budget and save
A budget is a way to take a bird’s eye look at your income versus your expenses in an attempt to ensure that you spend in a manner that covers all of your expenses. Creating and sticking to a budget can help you in any financial setting, but especially during the bankruptcy process. One of the most important elements is to show the court that you are becoming responsible with your spending to avoid getting in the same situation again.
Spread the responsibility
You can spread out your spending a few different ways. If you are preparing ahead of time, you can set small increments of your income aside. There are programs that may assist you in doing this every week or month, as well as “Christmas Clubs” at certain banks. You may also consider doing Secret Santa for gifts or setting a limit on the number of gifts per person ahead of time. Food is usually another large cost, so if you have extended family and friends coming over, you may consider making dinner a potluck.
Consider secured credit
Proper use of credit will help to rebuild it after a bankruptcy. One of the safest options is a secured credit card. You should note that it will require a deposit, and you should try not to spend more than you can pay off within a month or two.
Implementing these tactics may help to reduce the stress and spending of the holidays in general, as well as through the bankruptcy process. Take some time to see how to best utilize these tips and other saving methods in your situation.