The holiday season is the perfect time to discuss an issue that plagues just about each and every person, debt. During the Christmas season we use credit cards to charge electronics, toys, games, clothing and various presents. Many people buy items that they cannot afford or may not even need due to the allure of “discounted†prices. Bills created at Christmas don’t just last during the Christmas season; these bills last year round. People spend 11 months or more paying off bills created over the course of a single month. Excessive buying at Christmas causes many individuals to declare bankruptcy in the first three months of the following year.
So how can you avoid the debt trap during this holiday season? Follow these simple debt solutions.
1. Have a plan and stick to it.
Before you hit the malls set a predetermined spending limit. No matter what happens do not go over your spending limit. Department stores and retail outlets count on shoppers making impulse purchases during the holidays. Avoid the impulse to buy items not on your list.
2. Stick to “cash only†purchases.
Only purchase items that you are paying for by cash or a form of cash. Debit cards, bank cards and check cards work well because they will typically keep you from spending more money then you have in your account. Remember you don’t have to pay interest on money that is yours.
3. Minimize the dollar value of gifts.
Don’t be Scrooge but be frugal! Remember Christmas is about giving, not about how much money you spend on presents. Allocate a specific amount to each person’s gift that won’t wind up putting you in the poorhouse in the New Year.
4. Stay away from store credit cards offers.
One of the best ways to solve debt problems is by not creating any new debt. Stay away from store offers that promise huge discounts for signing up for a charge account today. These offers exist to entice you into spending money that you don’t have. 15% off sounds good during the holidays but it doesn’t sound so good when you are paying 23% interest on the bill in January.
((This post was originally published last December.)
Staying Out Of Debt During Christmas is a post from:
©2010 . All Rights Reserved.
.
