5 Easy Ways to Avoid Holiday Debt
It certainly may be the most wonderful time of the year, but it can also be the most expensive. Let’s face it, there’s no escaping the repercussions of careless overspending during the holidays. Here are a few tips to help you avoid ringing in the New Year with a mountain of debt.
1 Make a holiday budget and stick to it.
You’ve probably heard this a million times, but we can’t emphasize it enough. If you have a budget that you are committed to following, it just may help you exercise the restraint you need to avoid overspending. Be sure to include everyone on your gift-buying list and how much you plan to spend on each person. Include all of your holiday entertaining, decorating and travel needs as well. If there’s anything unnecessary on your list get rid of it. Is your budget more than you can afford? Skip the expensive restaurant meals over the holidays and cook a bit more at home. Cut down on the amount spent on each gift or try a Secret Santa instead. After all, it’s the thought that counts. Do your kids really need every single item on their list? Remember the Christmas mornings of your childhood? Happy memories, right? And probably a lot fewer gifts. Finally, it’s not only important for you to make that budget, but to stick to it as well. This means carefully tracking your spending. Try using a budgeting app, such as Mint or Wally.
2 Shop smart. Just because it’s advertised as a big bargain, doesn’t mean it really is.
Avoid getting lured into the deep-discount trap. Stores may inflate prices and offer a big sale just to lure you in. In fact, that’s a pretty common tactic. If you take the time to shop around and compare prices, you may quickly find that a big discount is really not much of a deal. Download a price comparison app to use as you shop. ShopSavvy enables you to scan barcodes and QR codes to find the best deals and compare prices from hundreds of retailers. Shopular will enable you to check out your favorite stores to see what’s on sale and get coupons. Do your research and be sure you are truly getting the best deal when you shop.
3 Try not to uses your credit cards unless you can pay them off in full.
Use your debit card rather than a credit card this year. It will ensure your debt doesn’t linger. If you like taking advantage of credit card rewards, that’s fine, just make sure you can pay off the bill when it comes in. If you haven’t planned well for holiday spending, you may be looking to buy yourself an extra few months to pay off balances. If this is the case, search for a low-interest credit card balance transfer rate offer and transfer the balances of higher interest cards. Spirit Financial offers a low balance transfer rate*** and no balance transfer fees.
4. Avoid buying gifts for yourself when holiday shopping.
Come on, admit it. If you’re like us, you buy yourself a few holiday gifts every year. You see those cute boots while you’re shopping for a friend and you just can’t pass them up. Sound familiar? Well, be strong and avoid the temptation. Stick to your budget, and if you still want those boots after the holidays, then go back, they’ll probably be on sale.
5. Be flexible with your holiday travel plans.
Traveling home for the holidays? Try flying on weekdays and off-hours to save on your flights. Be flexible and do a little research to find the best days and times. Your travel needs to fit into your budget. This may mean adjusting your budget and spending less on gifts this year. Christmas is so much more than exchanging presents, it’s spending time with those you love and celebrating the joys of the season together.
Share the gift of credit union membership
We hope our tips help you to give yourself the gift of a debt-free holiday season this year. Spirit Financial Credit Union is here for all of your financial needs. Not a member? You are eligible for membership if you live, work, worship or attend school in Bucks County, PA. You are also eligible if you are a family member of an existing credit union member. If you are already a member of Spirit Financial, there’s no better time to share the benefits of credit union membership with friends and family.