Treating your financial hangover

Heather Joy
It’s that time of year again – when the first post-holiday season credit card bill arrives and the season’s excesses leave you feeling anxious. While your first reaction may be to hide that credit card statement in a drawer or empty your savings account out to pay it off, there may be more desirable options available.
After the holiday season excitement the realization of this new financial strain can leave military families looking to get their finances in shape. According to Fran Sizer, community readiness consultant at the RAF Lakeheath Airman and Family Readiness Center, there is plenty of tools available from the A&FRC to help.
Sizer suggest that members call the A&FRC and make an appointment to speak with a consultant that can assist them with making a budget, debt reduction and/or savings plan. Clients will need to bring along their financial paperwork including credit card statements, student loans, car payments, savings statements, and pay information. The consultant and the member will draft action plans on spending, saving and debt reduction.
“The action plans need to be something that the client is willing to undertake in order to make a difference in their financial situation,” Sizer added.
Paying off debt can be one major step for a family to take towards financial success. According to Business Insider, an online business news website, one in 50 households owe more than $20,000 in credit card debt.
Sizer is not surprised by this figure, “We are a card comfortable society these days.” She explained that often people look for immediate gratification, using convenient resources like credit cards to buy now.
Starting an emergency fund is another positive step in financial fitness. “Everyone has the opportunity to save something, what that amount looks like would be determined upon their financial situation,” explained Sizer. Small amounts will eventually add up to a significant amount. One way to start putting money away for a rainy day is to setup an automatic transfer each payday.
To avoid the financial hangover again next year start planning for your holiday spending now. Sizer recommends adding holiday spending as part of your regular monthly budget.
“If you know that you like to go overboard at the holidays and there is a magic amount that you spend, if you build that into your budget it will force you to look at the amount and determine if you need to spend that much,” she said.
By budgeting ahead of time you can have the cash in hand when it comes time for holiday spending to avoid debt and that shocking credit card statement in the mail.
For more information about financial planning tools available or to make an appointment to speak to a consultant contact your local Airman and Family Readiness Center.
Check back at http://uk.stripes.com/All_UK_events for a list of basic financial education seminars and workshops scheduled to take place at local A&FRCs during Military Saves Week, February 19 – 26th.