hen the holiday season large balance on your holiday
arrives, many of us turn purchases. (Trust me, you don’t
to credit cards as a way want to be paying off those
to plump up our gift-giving Christmas presents in July.)
budgets. They can be real
And when you do set your
life-savers when cash is tight. spending limit, be sure to
The secret to using credit cards include everything you consider
intelligently for holiday essential for the holiday season.
purchases is simple: stick to the If you regularly send out holiday
rules, and don’t overdo it. cards to friends and family,
Rules? Yes. Before you buy include those. If you’re hosting
anything, you need to lay down Christmas dinner this year,
some basic rules for how you will include the total price of the
use your credit cards - and be meal. Trees, decorations, and
tough enough to stick to those small gifts for co-workers and
rules.
others should all be factored
First, you’ll want to set into your holiday budget. You
spending limits. Take a realistic don’t want any last-minute
look at your finances. How much financial surprises; they’re
can you afford to spend on usually bad.
individual gifts without digging
Next, decide where you want to
yourself into a hole of debt? shop. If you have retail store
Whether it’s $20 or $120, set credit cards that offer discounts
your limit and stick to it, even or rewards, decide whether it’s
if you notice something at the in your best interest to use
last minute that so-and-so just those. Don’t wait until the last
couldn’t live without! Think of minute to do your holiday
the spending limit you set as a shopping. You’re more likely to
law, not a guideline. This limit make intelligent purchases if
will keep you from carrying a you’re not panicking about the
date. Also, by doing your deals and minimize the amount of
shopping year-round, you’re able money you throw into interest and
to take advantage of sales as penalties.
they come. (Think Fall sales,
Personal finance experts have
Back to School sales, Summer a name for the traditional
sales, etc.) By spacing out your overspending we tend to do this
purchases over several months, time each year: Holiday Hangover.
you will have more time to That brings to mind headaches and
comparison shop and decrease your nausea, and for good reason; if
chance of charging a lot of you’re spending most of your year
last-minute purchases that you paying off credit card debt from
can’t pay off quickly.
the previous holiday season,
Finally, pay off your credit you’re probably sick of it!
card balance as soon as possible.
Holiday spending doesn’t have
This is a good rule to follow any to be that stressful. As long as
time of the year, but especially you can honestly assess your
around the holidays. You don’t financial situation and follow
want those great holiday prices your spending rules, you should
to get inflated by interest and have a happy, debt-free holiday
fees. Try to pay off the balance season.
each month. If you have to carry
a balance, pay it off as quickly
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Article Tags: credit, holiday, youre
