A new year can mean a new opportunity to take charge of your finances. However, it can seem an unbearable burden if you’ve racked up debt over the holiday season. In fact, the average individual has taken on over $1,000 in debt over the last few weeks.

But it doesn’t have to be that way.

There are some good ways to help you get over your holiday debt and get back on track with your finances-

1. Pay down the debt with the most interest rate first. One of the best ways to cut down the amount of money that you will have to pay over the long run is to reduce the amount of interest you pay. If you can reduce the amount you are paying on interest charges you’ll have more money to pay off your debt.


2. Sell off your unused items. Clean out your closets and get rid of any items that you don’t use or want. Consider doing this with unwanted Christmas gifts too. Don’t forget to price them to sell, not to try and get top dollar. All of this extra money can be applied to your biggest debt, whether that is a credit card or credit line.

3. Consolidate your debt. Consider taking out a loan and bring your debt under one account. This can help you cut down the amount of interest you are paying.

4. Learn more about wise budget practices. Being aware of your spending habits and how to change them can help you achieve your debt-free life. There are plenty of tools available online to help you become more aware of your spending habits and better organize your spending.  For example, SkyCap Financial, a Canadian term loan provider, offers financial literacy training through their SkyCap University, in addition to their loan programs. Clients of SkyCap Financial are able to get up-to-date tools for developing a budget, handling credits and loans as well as preparing for retirement.

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