How To Avoid Holiday Debt
You said this holiday shopping season was going to be different. You said you weren’t going to slap Christmas expenses on plastic and deal with it in the New Year.
Yet holding those last-minute gift items in your hands at the checkout line long after the Christmas budget has been blown equates to one thing: More debt, again.
Budgets are easiest to blow during the season to give, for obvious reasons. Here’s how to avoid the holiday debt pitfalls.
Leave the plastic at home. Take the charge cards out of your wallet before you go out the door. The average American has 8.6 of them. If you do a lot of online shopping, have your spouse, friend or family member hide them in a safe place.
Limit your shopping exposure. Tell yourself you are allotted a few online or in-store shopping sessions per season. This also means immediately recycling catalogs before you can even turn the pages. Start taking yourself off holiday mailing or email lists.
Plan a budget in advance. Start a savings club between friends or automatically drop $20 into an online account once a week. After 52 of them, you’ve got over thousand dollars. We all know Christmas falls on the same day every year, which makes it all the more easier to financially plan for. Making a list and setting costs early is advice this Banking My Way article recommends.
Switch to the sentimental. Frame a picture. Make some homemade jam. Create a Cold Care Kit. Think of all the everyday items out there that would make great gifts. If you know a few on your list won’t appreciate this strategy, use a store-bought gift budget for them.
Regard your rewards. Cash-in on gift cards using credit card reward points. There are hundreds of stores and amounts to choose from. Your credit cards owe you something for your dedication. Wallet Pop covered similar alternative yet great online holiday saving tips here.
Agree to opt out. There are those who will survive without your holiday generosity. Some might even show gratitude about your idea to stop the costly exchanging. Plan a potluck instead or do a Secret Santa. It doesn’t have to come off like a cheap punishment, either. Saving money is reason for a fine celebration.
January 25th, 2010 at 9:22 pm
I did more online shopping this year and found it helped eliminate those impulse purchases in stores. I also have found your advice about recycling catalogs before opening them to be helpful. Great site!