3 Ways to Avoid Getting in Debt during the Holidays
3 Ways to Avoid Getting in Debt during the Holidays https://guardianfinancing.ca/wp-content/uploads/2017/12/get-out-of-debt-683x1024.jpg 683 1024 Guardian Financing https://guardianfinancing.ca/wp-content/uploads/2017/12/get-out-of-debt-683x1024.jpgThe average American spends about $780 on gifts during the Holidays season. To the unconcerned, falling in debt during the Christmas season is very easy. However, if you have some financial literacy, you should not allow yourself to go into debt during the holidays, since there are a plethora of methods you can use to navigate your finances, and enjoy a merry debt free Christmas. Here are some tips:
Determine the amount of money to spend
Before you start reaching for your credit card to make Holiday purchases, decide on the amount of money you intend to spend, and make a commitment to stick to your budget. Without a budget, it is possible to fall victim of impulse buying, which will not just leave you with a lot of stuff you didn’t intend to buy, but also make you spend your money in ways you did not anticipate or desire.
Save throughout the year
Instead of waiting for the holiday season to start looking for money to spend, make it a habit to save for Christmas, throughout the year. If you have an idea of how much you usually spend during the festivities, you can spread out the amount throughout the year. In this manner, you will not feel a heavy burden, which may lead you to withdraw a huge sum of money at once, for your holiday expenses. This should also help keep you out of debt.
Take advantage of credit card rewards
If you are disciplined enough to use your credit card responsibly, and you are given credit card rewards, Christmas is the best time to use your reward points. You can often use the rewards for a myriad of shopping purposes, including buying gifts for family members or purchasing items from certain participating stores.