How to recover from debt this Holiday season?

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The Holiday season is upon us with Christmas, Dubai Shopping Festival 2017 and New Year celebrations just around the corner. All of us are preparing for the festive season at full force, at the same time not paying attention to our increasing amount of bills and receipt cluttering on top of each other.

For us, December, January, June till August (Dubai Summer Surprises) are the most tempting months with many Buy 1 get 1 Free offers, 50% to 75% off offers or a gift on every purchase. So are you tempted to head down to your nearest mall to avail these offers in your favourite stores after reading this?

At the bright side, this is a better way to save an ample amount of money on your favorite brands. However, on the other hand, this method piles up an enormous quantity of bills and receipts to be taken care of later on.

We at Isthatmir.com have some tips for you on how you can save more and spend less this festive season.
  1. Declutter – Declutter your house and sell any unwanted items that you would not be using later on. By selling items, you will be able to get some of your money back and start saving for your next holiday season. This is also another way to get rid of items that you have not brought into use for a very long time that made a dent in the amount you overspent during the holidays.
  2. Financial situation – Before jumping into the shopping season, always assess your financial situation and plan accordingly. Make a list of your existing debts (if any) and clear them before heading out to spend more. Do not forget to consider your other financial goals as well.
  3. Unlimited spending – For shopaholics, this is a very simple step to increasing due credit and debit card bills and falling into debt. Always use coupons and do comparison shopping for essential items and at the same time cutting extra spending. Cutting on additional expenses can make a huge difference in your monthly budget. Opt for a simple life and save a significant amount of money over the course of the year.
  4. Divide your shopping – Make a list of items you use on a daily basis and divide your shopping cart over the process of the year. This can be done by keeping an eye on eye-catching offers on your favourite products and brands and spending only when the offer is ‘too good to be true’. This method will help you in keeping your budget in check and at the same time strengthen your credit and debit score.
  5. Side business – A good option for shopaholics is to earn money on the side by doing any business whether it’s freelance or not. Having an extra income will help you in being creative and keep your mind off unnecessary spending.
  6. Start saving – Start saving at the commencement of the year for the end of the year festive holiday season. Try your best to avoid using credit and debit cards as much as possible or worst taking loans for shopping purposes. Make a habit of saving some bucks every month from your pocket money and salary and when the time is right for you, combine the collected amounts for your spending.
  7. Stop overspending – The rule of thumb for getting out of debt is not overspending at all. Making a continuous habit of purchasing items on your credit and debit card will quickly land you in debt with toppled bank interest rates. Instead, keep a check on your spending habits and make limitations as much as possible and where ever and when possible. This takes time and efforts, but trust us when we say that it’s worth it in bringing your finance back on track in a short period.
  8. Festive season budget – Before stepping into the festive season, plan your budget beforehand as it might be difficult for you to track it when you overspend. Keep your festive season budget separate from your monthly budget and only make use of them when necessary.
  9. Online shopping – Try limiting your online shopping methods to a minimum and only go for it when it is needed as online shopping makes use of your credit, debit or PayPal accounts most of the time.

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