How To Avoid Credit Card Debt This Holiday Season

How To Avoid Credit Card Debt This Holiday Season

The holidays are coming, and for most of us, that means splashing a lot more cash than usual. Between buying gifts, socialising, and going on holidays, this time of year can get expensive very quickly. If you’re worried about the holiday hangover that will be seen on your credit card statement, follow these tips to avoid excess credit card debt and keep your spending under control.

Set A Budget

Before the holidays begin, take a look at your current savings and income and set a firm budget for the season. Try to be realistic about what you are likely to spend – a budget that doesn’t reflect actual events won’t be helpful.

Remember that this time of year is supposed to be fun, and it’s okay to use some of your savings to ensure you have an enjoyable holiday break. But it’s also important to be sensible and not be left with big bills next year.

Consider everything that you are likely to spend money on these holidays. Some common expenses include:

· Extra food and drink for entertaining and going out

· Presents for friends and family

· Decorations for Christmas

· Travel and accommodation

Make A Gift List

Making a gift list early will really help to keep your spending under control. Plan what you want to buy for each person and estimate the amount that the gift will cost. Having it all written down makes it easier to keep track and see how much money is being spent on presents.

Agree On Gift Spending Limits

Do you ever feel obligated to spend more on a gift because you worry the other person is spending a lot on you? It can be a good idea to talk to family and friends and agree on

spending limits for presents. This keeps everyone’s spending under control and prevents that awkward moment when someone has bought you something much better than you got them!

Use Rewards Systems

If you have a credit card (or more than one), you are probably signed up for a rewards system. Now is the perfect time to take advantage of the rewards points you have accumulated over the year and use them to avoid spending more.

Many credit card rewards will allow you to redeem points on gift cards at major retailers, so you can purchase them for presents. Many will also be redeemable for travel, so if you’re heading away this holiday season, think about using your points on flights.

Spread Out Your Spending

Doing a single massive shop for all your holiday season essentials can leave you with a lot of debt on your credit card. This means it’s hard to avoid spending more on interest and it can take you long to pay your credit card debt. Instead, it’s a good idea to plan ahead and buy the things you need incrementally. This gives you more time to pay off your credit card slowly and keep your debt under control.

For example, you may want to buy a couple of gifts each week until Christmas. If you know you are booking a trip away, plan to pay the deposit during a week when you’re not going to be going out for a lot of festive dinners. And if you’re doing a big grocery shop for all your holiday treats, try to buy non-perishables ahead of time instead.