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Paying off your holiday debt

Published: Jan. 3, 2022 at 7:01 AM EST|Updated: Jan. 7, 2022 at 9:59 AM EST
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RICHMOND, Va. (WWBT) - Holiday debt averaged more than $1,300 in 2020 - a 6-year high according to Magnify Money. Once you get your holiday debt paid off for this past year, don’t let the cycle start all over again.

Instead, start saving a little bit now for the holidays next year.

Cherry Dale a financial coach with the Virginia Credit Union says February or March of 2022 would be a great time to try setting aside $50 a month.

“In a saving account not linked to your checking account is my advice. Where it’s automatic, taken from your payroll. Automatic, deducted into a little account off to the side, earning interest and then you’ll have it for next year,” said Dale.

If you set aside $50 a month starting in March, that’s $400 you have by the end of October for your holiday spending in 2022.

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