Melville Attorney Leslie Tayne's Tips on Avoiding Holiday Debt

MELVILLE, NY; DECEMBER 4, 2020 – Leslie H. Tayne, Esq., founder and head attorney of debt resolution law firm Tayne Law Group, P.C. of Melville, NY is sharing her top four tips to avoid holiday debt. As we enter an unprecedented holiday season, consumers are assessing how much they can afford to spend amidst the COVID-19 pandemic and significant nationwide layoffs. Now more than ever, holiday spending can be detrimental to your financial health but consider these tips to help you stay on track.

"Avoiding holiday debt should be your goal every year. However, this year, we're in a situation that none of us have ever lived through before. Unemployment rates have reached staggering numbers this year," Tayne explains, who has 20+ years of experience in consumer and business debt solutions. "Even if you feel secure in your job, adding additional debt right now is a dangerous risk to take. If the unexpected and the unfortunate does happen to you, you want to avoid making yourself more vulnerable to financial disaster by keeping your holiday spending in check."

Here are Tayne Law Group, P.C.'s top tips to consider that will help you avoid holiday debt this year:

• Craft a realistic holiday budget and hold yourself accountable. Budgeting is going to be the most crucial way to avoid going into debt. Take an honest look at your financial situation right now and consider creating a realistic holiday budget. From there, you can make a list of everyone you're planning to buy gifts for and compare the list with how much you have to spend to determine how much you'll spend on each gift and hold yourself accountable to that. Consider taking out cash (only the amount you're willing to spend) and making all your purchases from that stash. If you're planning on making most of your purchases online, consider keeping a spreadsheet or using a budgeting app to make sure you're not going over your limit.
• Understand the emotional push to overspend this year based on current events. It's been an emotional year, and those emotions could come into play when it comes to holiday spending. Since we've spent most of this year away from loved ones or cooped up at home, many may see the holiday season as a way to make up for that missed time and end the year on a better note. This may translate to trying to buy a larger quantity of or more extravagant gifts. If you're unable to spend anything or spend as much as you normally do, the fear of missing out could also tempt you to spend more than you can afford. Take a moment to pause and recognize when you may be feeling this. Consider what steps you can take (like putting credit cards away or talking to a budget buddy about your urge to spend) to avoid giving in.
• Try to avoid any holiday loans. For those who cannot spend or spend to their liking this holiday season, it may be tempting to take out a loan or apply for credit cards with holiday introductory promotions. However, going into debt can worsen your financial situation, especially if your cash flow is stagnant. If you're unable to pay back the loan or pay off your credit card balances in full, you'll be paying more in interest. Your credit score could suffer, and if you miss payments or pay late, you may be racking up fees. Try to keep in mind, the joy of the season doesn't hinge on how much money you spend.
• Start thinking about next year's financial plans, now. If 2020 taught us anything, it's to expect the unexpected. We have truly learned the importance of an emergency fund this year. If you don't have one, consider starting one as you prepare and move into 2021. Even if you don't have much to put away, start making a habit of saving regularly, even if it's a small amount. Even small amounts will add up quickly and can help provide a cushion if an emergency arises. It's also important to start planning for assistance programs ending like federal student loan interest to return on January 31st. Therefore, it's time to start preparing for how your finances will look once those payments resume. If you know you won't be able to make the same payments you were making before COVID hit, contact your servicer and consider other repayment methods, such as income-driven repayment.

Tayne Law Group initiated free counsel during times of struggle for the local community before disasters like Superstorm Sandy and again when the pandemic began in March. Individuals who are in need of financial guidance this holiday season can contact Tayne Law Group, P.C. for a free, no-obligation consultation by visiting taynelawgroup.com or calling (866) 890-7337.
This is going to be a difficult holiday season for so many. Between the inability to physically be with loved ones and the financial stresses, it can be easy to feel down during this time. However, remembering that money and gifts are not everything, creating and sticking to a holiday budget, and finding creative ways to bring joy, people and their loved ones can still make special memories.

Headquartered in Melville, N.Y., and led by financial attorney Leslie H. Tayne, Esq., Tayne Law Group, P.C., is the only New York State practice whose sole concentration is in debt management and debt resolution. Since its establishment in 2001 as a debt relief law firm, Tayne Law Group, P.C. has expanded into Westchester County with offices in White Plains and Mount Kisco, N.Y., and regularly assists thousands of individuals and businesses with the management and resolution of their unsecured debts.
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