While the holidays often bring wonderful gifts to your doorstep, they can also bring things that you just don’t want or need. Make the most of your unwanted gifts this year by using them to help with debt reduction.
Unwanted Gifts to Reduce Credit Card Debt
Debt reduction may seem like a far off goal. That’s why it’s important to use every tool and trick available. Get creative with your finances to overcome debt by finding unexpected income from unwanted gifts. Use it to pay off debt or add to your savings. Here are four tactics you can employ to make unwanted gifts productive in your budget.
Sell Unwanted Gifts Online
Craigslist, eBay or other online sites to reduce credit card debt. Maybe you or your kids received a video game that you already own. Some of those games go for $50 a pop! Remember, products left in the wrapping can be a great selling point for online buyers.
Offer Unwanted Items to Friends & Family
Market unwanted gifts to friends and family. Don’t let the Internet be the only place you try and sell your merchandise. Friends and family can be a great market too. They may ask for a discount, but it’s still more cash than you had to begin with!
Choose an Alternative Gift from the Giver
If you feel comfortable, talk with the person who gave you the gift. They may be able to exchange it for you or take a suggestion for something that you really do want. Maybe they have a gift receipt so you can return it yourself. This way you won’t have to spend money from your budget on something you need, getting you closer to reducing credit card debt.
Keep the Unwanted Presents to Regift
It’s not a bad idea to hold onto some of those more desirable items to put into circulation later. Create a cache of goodies to help offset your gift budget down the road.
Help Your Budget
If you succeed in selling unwanted gifts or returning them for money, there are two great ways to help your budget. The first is debt reduction. Round up all your credit card debt, choose a repayment strategy and send the extra payment to the one with the highest interest rate or the biggest amount of debt. Don’t think about using the money on shopping and non-essential treats. Getting rid of debt should be priority one when managing credit card debt.
Secondly, you can build your emergency fund! Having extra savings is important if something were to happen to your income unexpectedly. Other emergency uses could include a big car repair, home repair, or medical bills.
Don’t forget these great options if you have unwanted gift cards!
To speak to a credit counselor today about budgeting and managing your finances, call 800-769-3571.