Updated: Feb 4
Having lots of debt can quickly consume your mind. And then, when you get even a few dollars of extra cash, you might be tempted to apply it towards all of your bills at once. But wait - before you put a little money towards every bill, I think it's worthwhile to implement a quick strategy. Here's a few suggestions to follow if you receive some extra cash this season:
Confirm if you have special promotions on any of your bills, i.e. "Zero percent interest for 6 months, skip the first three payments, etc." If the due date for bills like these is quickly approaching, I would prioritize paying those bills first.
Consider putting the extra money towards your smallest bill first. So if one bill is $750 and the other is $2,000, I would focus on paying off the smaller bill. You will find great satisfaction with paying the smaller bill off and it will inspire you to pay off the larger $2,000 bill. You can also follow the Dave Ramsey Snowball Method; it's a great way to prioritize debt repayment.
The last suggestion is to save the extra money (rather than applying it to bills) until you get enough money to fully payoff one of the bills. This is a two-for one deal: taking this approach will help you develop patience while also helping you get into the habit of saving.
I hope these quick tips will be helpful for you this holiday season and always.