The holiday season seems to be a season of excess. Eating too much pie or drinking too much eggnog is one thing. Charging too many gifts on your credit cards is another.
Although the holiday season may entice you to spend more than you can afford, a little self-discipline can help you keep your purchases to a manageable limit.
6 Tips to avoid Holiday Debt
- Start Saving! Spending cash instead of using credit for your holiday purchases allows you to avoid holiday debt all together. If you haven’t started saving, it's not too late to start. put aside something each paycheck starting now and use that to finance your holiday purchases. Start a Christmas Savings Account
- Set a budget BEFORE you shop! Setting a spending limit and sticking to it will keep you from overspending. Be disciplined and don’t go over your budget, no matter what. --> FREE Holiday Budget Spreadsheet
- Make a list! Santa makes a list and checks it twice, so should you. Even though you might feel compelled to splurge on everyone in your life, you don't have to. People appreciate simple and meaningful over expensive and useless.
- Use layaway! Layaway disappeared for a few years, but a lot of big retailers, like Wal-Mart and KMart, are bringing it back for the holiday season. Starting early means you can put a little toward your holiday purchases each month. In the end, all your purchases were made and you'll be free of holiday debt.
- Ignore "big" sales. More often than not, they're not really sales at all. Those "Buy 2, Get 1 Half Off" deals only trick you into buying more than you would otherwise. Remember, stick to your list.
- Leave your credit cards at home. Without your credit cards, you’ll have a hard time charging them up.
Do you have and tips for smarter Holiday spending? Please share your tips and tricks in the comment thread below!
