8. Check That List – Again
Is the gift necessary? Is it appropriate? Is it within your budget and price range? Ask yourself these questions before you make each purchase. If the answer is no, or you are not sure, put the item down and walk away. It is not worth it, especially if you are going to put it on a charge card.
9. Use Those Cards Sparingly
Use your debit card. If you must use credit cards, then the rule of thumb is to pay off your purchases within 90 days. Otherwise, a simple $15 item could cost you triple that amount.
10. Stay Away From Impulse Spending
Impulse spending is the major culprit when it comes to holiday debt. The costs are very difficult to track and can accumulate quickly – especially if you are using charge cards. If the item is not on your list, do not buy it.
11. Do Not “Buy Now, Pay Later”
Consumer groups warn shoppers away from this debt-building trap throughout the year. Think about it: Why do you think you will be able to pay for that item three or four months from now, if you can’t afford it today?
12. Post-Season Sales Are Great
Shop wisely and take advantage of them so that you are prepared for next year. It’s a great time to stock up on cards, wrapping, holiday decorations, clothing, and so on. Many stores reduce items more than 50% -- what a savings! Is there anyone on your list with whom you can exchange gifts after the holidays? Then save your gift-buying for the post-Christmas sales. Don’t forget: use your debit card wherever possible and leave your charge cards at home.
One Final Note:
13. Pay Your Cards Consistently
Many creditors will offer their customers a “payment holiday” post-Christmas. It is not a holiday -- it is an expense. You will still be stuck with the debt in February, but with unpaid interest that has been compounding since December. If you have used your cards for holiday shopping, stick with your spending plan and pay steadily so that the debt is gone within 90 days of the purchase date. |
