Sometimes, the siren song of retail therapy can be too enticing. Maybe it was a stressful week, a persuasive friend or a really, really good deal that kicked off your shopping spree — but now that the bags are empty, how are you going to rebound from the debt? Here’s where to begin.
Step 1: Assess the Damage (Without Judgement)
This is the hard part: Open your banking app, pull up your transactions and total up the damage. It might make you feel unpleasant, but being honest about the money spent can help you stress less about it later — and make a plan to tackle it now.
Step 2: Hit Pause
If you’re concerned you’ll spend too much again soon your first moves should be:
- Pull out cash from your account to cover the basics for the next few weeks, like food, rent and incidentals.
- Freeze your cards in your banking app.
- Delete saved card info from the sites that trip you up, like shopping and delivery apps.
- Put a 48-hour pause on all “wants.” If it’s not rent, bills or food, it goes on a list for two days. Nine times out of ten, you’ll forget it.
Step 3: Repair Your Budget in Small Steps
You don’t have to overcorrect to get back on track. Instead, start with triage:
- Itemize and ensure you know what your minimum monthly needs are for things like housing, utilities, food and transportation.
- Pick a couple “extras” to pause, like streaming services, premium versions of apps or ordering out.
- Identify and pay off any bills that slipped because of the binge.
Step 4: Get Professional Help, If Needed
If paying down balances across multiple cards feels like whack-a-mole, debt consolidation could help. Rolling them into one payment can help you save 40% or more on eligible monthly payments, and can even help you get free from debt in as little as 24-48 months.