GRANDVILLE, Mich. (WOOD) — As the days inch closer to February, financial burdens from December are now starting to creep up on many consumers. There is an effective way to tackle your holiday debt, according to a West Michigan financial expert.
Tom Jacobs, president and founder of Jacobs Financial Services, told 24 Hour News 8 that the average American took on about $1,054 worth of debt in 2017. That amount may be high for people who rely heavily on credit cards during the holiday season.
“We see it all the time,” Jacobs told 24 Hour News 8. “I think a lot of people go into the holidays unprepared. They just simply don’t have a plan. They don’t have a budget. They end up overspending.”
Jacobs said that he understands how a gift giving mindset can lead to a financial downfall.
“One thing leads to another — I bought one gift for Jim, but I didn’t buy one for Fred. Jim’s (gift) was $20. I need to make sure I spend at least $20 on Fred. People just kind of go into it willy-nilly. They don’t know what’s going to happen.”
Jacobs said that is how people end up starting the year with a load of debt.
He and his staff put together a “Holiday Hangover Kit.” It’s a five-step plan to tackle heavy holiday debt:
- Make a plan.
- Find frugal entertainment.
- Start a snowball Effect.
- Look for lower rates.
- Plan for next year.