After Christmas you might look at your credit card purchases and wonder how you’re going to pay everything off. Many people pay off Christmas shopping debt slowly and end up having to pay more because of interest charges. Christmas shopping debt creates a tedious cycle that is difficult to break because by the time you’ve paid off everything from last year’s Christmas it’s time to start thinking about this year’s Christmas. It’s time to make some changes and not accrue so much Christmas shopping debt at one time and ease some of the “financial burden” that comes during the Christmas season.
Tip 1: Spread the Spending
You’ve heard this tip before: spread out your shopping. Quite frankly it’s just one of the most logical methods to minimize Christmas shopping debt. The reason this works so well is because you’ll spend far less at one time in multiple shopping trips than you would if you went shopping all off of one paycheck.
If you’re looking for a way to cut back your Christmas spending then in addition to buying gifts throughout the year you’ll also need to make a budget. This means you’re going to need to be far more organized. Creating a budget is a tip that will be discussed later.
Tip 2: Christmas Savings
If you enjoy the thrill of shopping late in the holiday season (and let’s face it, some of us do) but you still don’t want Christmas shopping debt then one way to evade such debt is by creating a savings account.
This is a great option for avoiding Christmas shopping debt because it forces you onto a budget (there’s that magical word again) plus you’ll be earning money while you save—well, you will if you put your money into a bank account rather than just in a piggy-bank.
By saving money you’re guaranteeing you have something to spend during Christmas. Don’t use this money for anything else (just think about what you’d do if you didn’t have that money saved) even for emergencies. You’ll regret spending your money early.
Tip 3: Make a Budget
Probably the hardest but most essential tip to follow at Christmastime and avoiding Christmas shopping debt is making a budget for yourself. The reason this is so difficult is because so many people want to spend so much at Christmas to make it special. While it’s great to make Christmas special it’s not always about what you spend. Get creative with the money you have and you’ll find you can make Christmas just as special on a budget as you do off of one (only this time you won’t have the after-effect of wondering what to do with your Christmas shopping debt).
Giving yourself a budget is essential for any method of reducing the stress caused by Christmas shopping debt. Whether you still plan to be a last minute shopper or you work hard to spread your spending, working to avoid Christmas shopping debt will be worthwhile.