Now that the holiday season is here, consumers- especially credit card holders need to pay attention to their spending. With the recent economic slump, managing debt can become very difficult if it gets out of control.
In this article, let’s talk about practical tips on how you can survive the holidays without falling in the debt trap:
Plan early. Remember, prices tend to go up as the holidays draws nearer. From gift wrappers, to ribbons, from the biggest items down to the smallest you can expect that they will be more expensive during the months of November, December to January.
Yes, it is the season for giving gifts but it does not mean you should break your budget. Planning early gives you time to think about the people who you want to send gifts to, what things to give them, and where to get them at a good price.
Take advantage of sales. Once you have your list, you can start buying items as early as you want. Take advantage of Sale events in most shops as merchants gear up for the holiday rush. Also, watch out for discounts that you can avail online from time to time.
What about after the holidays?
Plan your financial strategy as soon as the holidays are over. Check your credit card accounts. If you own more than one card, make sure that you aware of your balances on all your cards.
You may consider consolidating your credit card bills into one by getting a balance transfer card with a zero interest rate offer. If you can cut back interest rate costs from your charges, you can save a significant amount of money that you can use for repayment.
Cut back on your spending.
After using your credit cards for your purchases, it’s time to focus on repayment. Do not be content with submitting only the minimum due payment. Pay as much as you can from your charges. Remember, the sooner you can pay off your all your balances, the more money you can save.
Don’t use your credit cards. This is not the time to use charge more purchases to your credit cards. You may want to take a break from shopping for the meantime, at least after you complete your debt repayment.