AFRC class teaches Airmen how to get out of debt Published Feb. 6, 2015 By Airman 1st Class Alexa Culbert 42d Air Base Wing Public Affairs MAXWELL AIR FORCE BASE, Ala. -- The Airman and Family Readiness Center offers "Paying off holiday debt" class to teach Airmen how to efficiently pay off debts that accumulate during the holiday season. The class focuses on holiday debt because this is when most Airmen find themselves spending outside their budgets. Most spend hundreds of dollars on gifts alone, not to mention the amount of money spent on traveling, said Twanfran Jackson, AFC®, the center's financial readiness consultant. "America is a consumption-based society, so we're pressured to spend even when we can't afford it," said Twanfran Jackson. "Companies and corporations spend billions of dollars in advertisements during the holidays, and they make it seem like it's your right of passage to receive lavish gifts." During the holidays, parents must balance the need to buy everything on their child's wish list with how much they can actually afford to spend. "What people buy for their children doesn't determine what kind of parent they are," said Jackson. "Parents sometimes get misguided that 'what's best for their child' means whatever their child wants." Ultimately, overspending during the holidays can cause problems for the rest of the year. The class not only teaches Airmen how to dig themselves out of debt, but how to avoid the debt trap altogether. "Many people struggle with trying to eliminate debt, or they just concede and stay in the rat race," said Tech. Sgt. Kenneth Gambrel, Air Force Reserve Officer Training Corps detachment inspector, who attended the class. "This class offers some proven methods that have helped people to get out of debt in an effective manner." The class teaches and encourages the "power pay method," also known as "snowballing," for paying off bills. The method works by putting extra money aside and concentrating it toward paying off one debt at a time, said Jackson. The first step to the power pay method is to decide the amount of additional money that can be set aside to pay off bills. This amount can be as low as $10, as high as $100, or whatever works best with the individual's budget. The extra money is then added to the minimum monthly payment of a bill until it is paid off. Once the debt is paid off, the money, to include the minimum payment and additional money, is then added to the minimum payment of the next debt on the list. This goes on until every bill is paid off, she said. The key to avoiding debt is planning ahead. Jackson advises Airmen to make a list for every expense during the holidays -- everything from wrapping paper and decorations to plane tickets and gifts. The expenses are then added up, and the total cost is divided by how many months are left before the holidays. The resulting figure is the amount of money to save each month in advanced. "Managing your money is a 365-day endeavor," said Jackson. "You shouldn't turn it off after a particular time of the year. In order to be successful, income management has to be an intentional effort every day." To learn more about the "Paying off holiday debt" class, or other classes available to Airmen, contact the AFRC at 953-2353.