10 Ways to Beat a Credit Hangover

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Got the Post-Holiday-Shopping Blues?

It's economic Armageddon. House prices are cratering, banks are begging for spare change, and it seems everywhere you turn someone is in need of a rescue plan -- including you. With the incoming bills from this past holiday season's charge-fest, you're starting to get buyer's remorse, big time.

Don't panic, we have 10 ways to help you beat a credit hangover.

First Up: Tip No. 1

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Credit Hangover Tip No. 1:

Don't Panic

First, calm down and stop hyperventilating. According to Lesley A. Hoenig, a bankruptcy attorney licensed in Michigan, Illinois, and Minnesota, realizing that your debt problem is not the end of the world is extremely important. 'You will make it out of this situation one way or another,' says Hoenig. 'What's imperative is to make a definitive list of all the debts you owe.' She explains that doing this will help to ensure that everything debt-wise can be dealt with properly, which should help you breath a lot easier, thus avoiding a credit-induced aneurism down the road.

Next: Tip No. 2

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Credit Hangover Tip No. 2:

Pay Off High-Interest Debts First

It's always a good idea to pay off the debt with the highest interest rate first, advises Hoenig. 'The higher the interest rate, the more interest that will accrue. With an APR of 30 percent it takes only three years before you wind up paying more than twice what you originally owed.' Determine which credit cards or debts are costing you the most interest, and work double-time at paying them off first. Remember, the two-fisted monster of compound interest works in your favor when you're saving money, not when you're borrowing it.

Next: Tip No. 3

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Credit Hangover Tip No. 3:

Ask Yourself, "Do I Really Need This?"

While it may not seem like much, take a look around at your most recent (and potentially returnable) purchases. If you can actually live without that 72-inch plasma TV or the Hannah Montana-inspired world traveler 22-piece luggage set, then think twice before pulling out the plastic. Returning whatever items you can for cash is a great way to reduce your bills immediately. Remember, interest payments can't accumulate on items that go back to the store. Note: Avoid store credit ' you don't want more stuff, just less debt!

Next: Tip No. 4

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Credit Hangover Tip No. 4:

Save Those Receipts

Price protection offered by stores is a gift only if you're smart enough to keep your receipts. These days, retailers are desperate to keep you shopping with them exclusively, so they'll go to great lengths to make sure you're secure in your purchasing decisions. For example, a Nerf Vulcan NBF toy supergun bought at Costco in early December for $49.99 fell to just $14.99 less than three weeks later ' a $35 savings (if you saved your receipt). All stores have different rules regarding price-protection guarantees, so check them out carefully. By the way, saving receipts also makes it harder to forget how much you're actually spending every day ' which makes sticking to a budget a whole lot easier.

Next: Tip No. 5

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Credit Hangover Tip No. 5:

Plan Your Spending

You wouldn't take a trip without a map, so why should spending money be any different? Ken Clark, a certified financial planner and author of the upcoming "Complete Idiot's Guide to Getting Out of Debt" (February 2009), calls spending plans a necessity. 'They are absolutely crucial - 99 percent of budgets fail because there are just far too many things to keep track of each month.' He suggests an effective way to create a spending plan: Use one bank account for all "variable" spending needs, such as groceries, entertainment, clothes, etc. 'By depositing a pre-budget amount into this account (a sort of allowance) and then spending out of the 'pile' created, you'll have a much easier time visualizing how much they've actually spent and have left to spend each month.'

Next: Tip No. 6

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Credit Hangover Tip No. 6:

Pay the Right Bills First

Believe it or not, there is a pecking order when it comes to paying your bills. 'Be sure to pay your credit cards and loans first," says Clark, whether they be your mortgage or car or student loans. 'These companies are the most aggressive when it comes to reporting missing or late payments to the credit bureaus.' He suggests that saving utility and medical bills for last is not a bad way to go. 'These kinds of companies very rarely report late payments in a way that will hurt your credit score.'

Next: Tip No. 7

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Credit Hangover Tip No. 7:

Consolidate Your Debt

While most experts agree that consolidating your debt into one place can make it easier to keep track of, they do offer warnings about debt consolidation services in general. 'I'm pretty cautious when it comes to debt consolidation programs offered by for-profit companies,' says Clark. He suggests approaching a family member first, or perhaps reviewing other sources. 'Check out your local credit unions -- many of these offer debt consolidation options that you can't find at regular retail banks.'

Next: Tip No. 8

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Credit Hangover Tip No. 8:

Re-Gift or Pay the Price

To most, the social suicide of re-gifting is right up there with belching in public or picking your nose at a stop light. Not so, says Jennifer Melnick Carota, expert giveologist at TheGiftTherapist.com, which provides advice on smart shopping and charitable giving. 'Re-gifting is definitely a strategy to consider if you have high-quality items that just aren't your style cluttering up your closet.' If you haven't used something before, why not pass it on to someone who will make good use of it? Besides, any money you don't spend on a gift is an extra few bucks you can use to pay down your debts.

Next: Tip No. 9

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Checking your own credt won't
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Cassandra Shie, AOL

Credit Hangover Tip No. 9:

Sell Some Stuff

You got in this mess because you bought too much stuff, so why not work at turning those past spending sprees into some cold, hard cash? Yard sales, eBay.com, even Craigslist.com are great ways to remove clutter and raise some funds to pay down debt. Beware selling too cheap though. 'Many inexperienced or first-time eBay users end up selling really nice things for way too cheap,' says Clark. 'Watch the auctions of similar items for a few weeks before you list your high-end items.' Also, Clark warns to beware of check fraud. 'By the time the check gets sent back by your bank (usually 5-7 days), they're long gone with your valuables.' Seller beware.

Next: Tip No. 10

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Credit Hangover Tip No. 10:

Grow Up

Lastly, recognize you are no longer a child and resolve to take on the responsibility of living within your spending limits. Who cares if your best friend won't wear anything but Prada? If she really is your friend, she'll understand why you shop at Wal-Mart. Driving yourself deeper into debt doesn't impress anyone, especially when it's their couch you'll end up sleeping on when you finally get kicked out of your apartment. Be an adult. Only give gifts you can afford and do everything you can to spend less than you earn. You'll be glad you did.

Jarrod Thalheimer is a freelance writer and columnist. His AdFool column is published weekly.

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