’s all very easy to make hay while the sun shines, only to wake up in pouring rain in the New Year, a rain of financial debts that will take a long time in repaying. But with a little planning and a lot of heart you can tackle the holiday blues in a much better fashion.

How December becomes an expensive treat

December is veritably the most expensive month of the year and it’s not just the Christmas fever that racks up the bills, the bitter cold jacks up the heating bills and the transportation expenses burn your pocket and a walk in the snow or biking in the park are hardly practical options.

This is usually the time when average debts exceed $1,000 and credit cards are the preferred method of payment for a majority of these purchases. It is little wonder that the season leaves a lasting debt trail that becomes a tough nut to crack in the New Year.

Keeping an eagle eye on credit options this season and understanding the risks associated with each option

When you purchase things to your heart’s content do have an eye on the method of credit that you are most likely to adopt. Store cards are extremely tempting but no one bothers to read between the lines; so long as the bills get paid within the deadlines everything proceeds smoothly, but the moment you exceed the deadlines your purchase attracts a very high rate of interest that balloons expenses, sometimes beyond your control.

You could get a temporary reprieve by transferring the store balances to a lower interest credit card but even this option should not be used repeatedly.

A stronger credit rating will get you a revolving line of credit where a consumer can purchase and repay credit card balances repeatedly so long as borrowing is restricted within a pre-approved ceiling. Again, the interest you pay for keeping debt balances is extremely high. Unless you adopt huge financial discipline and repay as quickly as possible, this is one advance that can potentially become a burdensome mountain.

Planning holiday expenses well ahead of the season

Whatever celebrations may be on the anvil, it is always safer to save in order to spend rather than spend uninhibitedly and repay huge loans in the long term. One of the most effective methods is to set aside a fixed sum every month from January to October every year without compromising or cancelling the savings under any circumstances. Accumulate the fund in a savings account so you get interest on your balance and you can withdraw this cumulative amount during the holidays to fund all your entertainment expenses.

Giving from the heart instead of from the wallet

If you think that an expensive gift makes all the difference to your loved one and the bond that you share, you make be creating an unnecessary financial burden on your matrimonial bliss. Rethink your priorities. Try adding creativity to the proceedings. Your lady may be fond of canvas painting; then present her an invite to a corks and canvas event that would be tailor made for boosting her creativity, and it shows you care. Your man may have a flair for fishing; sponsor a weekend fishing expedition that will cheer him up while you take in the sights and sounds of Mother Nature. These are inexpensive and better ways of bonding and showing that you care.

Extracting the maximum benefit from a loan for vehicle title

One glorious exception to our rule to avoid raking up debt is the cash loan for title. The car equity loan allows you the opportunity to take out 60% of your car equity, an amount large enough to help you consolidate credit card outstanding if expenses have ballooned beyond control. The auto collateral loan is leagues ahead of payday loans and charges much lower interest at 25% APR. The pawn car title repayments can also be structured to fit your budget. This amount can be utilized for big ticket purchases or for consolidating credit card balances if expenses leave you short of cash and faced with a higher debt burden.