Christmas is always a time of the year when consumers go overboard with their spending. Many consumers max out their credit cards during the holiday season even when they know they will spend years trying to repay all the debt. Fortunately, there are several ways that one can avoid maxing out his or her credit card over the holidays.
Don’t fret if you’re worried about overspending. You can use the following tips and then build on those tips to safeguard your finances:
- Set Firm Spending Boundaries
The most important thing to remember on Christmas is that it’s okay if you do not break yourself to appease the masses, by sticking to a holiday budget. Your family members and friends will love you the same whether you spend hundreds of pounds or thousands of pounds on them for Christmas. Boundary setting is an excellent way to keep you from going overboard. You can set an amount that you will not go over ahead of time. Your spouse can help to keep you in line if you start to wander out of bounds.
- Start a Christmas Club Account Early in the Year
Another great way to avoid maxing out your wallet on Christmas is to start a Christmas Club account early in the year. A Christmas Club account is a special fund that is specifically reserved for Christmas. The idea of a Christmas fund is to start growing it early in the year and never touch it until it’s time to go shopping. You may be able to sign up for a Christmas fund through your job, credit union or local bank. One of the benefits of having such a fund is that you may get an above-average interest rate for storing it.
- Use Prepaid Debit Cards for Christmas Shopping
Prepaid debit cards can be an excellent guide for your holiday shopping. You can set the amount that you will spend by loading the prepaid debit card with that amount. Prepaid debit cards work the same way that credit cards work except you cannot go “over the limit.” You can no longer spend money once you’ve exhausted the amount that you put on your card.
- Shop Used or Generic
Finally, one option to avoid overspending is to opt for some used or generic items. You may find toys, electronics and even some clothing items at various outlets, discounts stores, flea markets, yard sales and more.
The holidays do not have to be a time of stress for you or your family. The good news is there are tons of information online about credit cards offering rewards and perks within reach. If you really have to use credit, then you might as well use credit card that gives you your money’s worth.
Enjoy Plunged in Debt?
Subscribe to get our latest content by email.