How to reset your budget after summer spending catches up with you

(InvestigateTV) — Summer vacations, camps and outings can add up quickly on credit cards, and with holiday shopping season approaching, some families may be looking for a way to catch up before the bills grow further.

Leslie Tayne, a debt relief attorney, said anyone who spent more than planned over the summer should not dwell on it, but should start addressing it now. She recommends a “September reset” of the household budget as the first step.

Tayne said reviewing spending against the original summer budget is an important starting point.

“Take a current look at your budget and spending. Are you within the budget that you set for the summer? And how much is left over, so maybe you could pay down some of your debt,” Tayne said. “What is your income looking like between now and the next billing cycle of your credit cards? Are you able to go in and make extra payments, thus reducing the balances that you have?”

For those who have gone through this process before, Tayne suggests planning major expenses months in advance so they do not come as a surprise. She also recommends monitoring credit card activity throughout the month rather than waiting for the bill to arrive.

Turning on spending alerts is one simple way to stay on top of activity.

“On most credit cards there are notification settings that you can put together, that you can go onto your dashboard and get, so that you get a notice when you spend over a certain dollar amount or when your credit card reaches a certain amount,” Tayne said. “It’s really a good tool to use to help manage your money.”

For families who find themselves in the same situation every summer, Tayne recommends using the fall months to start saving for the following year. Setting up a separate savings account dedicated to summer spending and contributing to it monthly can help reduce reliance on credit cards next time.