Did the Holidays Overwhelm Your Budget?

Every year people vow they’ll keep things under control. There’s no way they’re going to break their budget and overspend through the holidays this year. They’re focused this time. No slip ups. And then…

They start buying gifts, and decorations, and food, and a bunch of other things to celebrate the season…

When they come to, somewhere around the third week of January, with a stack of bills piled up on the table and their budget left in tatters, it dawns on them that it has happened again, maybe worse this year than ever, and they feel powerless to stop their spending.

“The road to hell is paved with good intentions,” isn’t just an old saying. It’s one of those sayings with a lot of truth to it, especially when it comes to managing your money. That’s because spending habits become ingrained in us over the years, and it often takes more than sheer will power to change your behavior, even if you’re disciplined in other areas of your life. In fact, a sizable percentage of consumers picked up their financial habits before they even had money of their own to spend. Think about it. How many of you spend money and/or save money like your parents did? The financial climate changes, just like the weather, and no two families are alike in every way, but your relationship with your money may have been handed down to you without your even realizing it. So, what can you do about it? Get help.

Every year, the phones at nonprofit credit counseling agencies start to ring in late January, and they usually don’t let up until May or June. That’s a good thing, if only because it means people are finally going to get the assistance they need from a professional counselor. It means they won’t be sleeping with one eye open, wondering how they’re going to pay all their bills this month. If you’re already a Cambridge client, you’ve learned about the generous rate reductions and other concessions that most major creditors are willing to make to give consumers the breathing room they need while they learn how to regain control of their spending. Your average interest rate may have dropped from 24% or 25% down to an average of just 7%, and your past-due fees were waived by your bank. How did that make you feel? Like a huge weight was lifted from your shoulders? That’s typically how our clients describe it – they can finally sleep again at night, confident that they’re getting back on track. Before the giving season is over, we hope you’ll share that feeling with anyone you know who’s struggling with their spending. Encourage them to call Cambridge and you’ll be giving them a free gift that’s actually priceless.