While it's never a good idea to go into debt to finance holiday gifts, if you have to, make sure to understand the different types of debt to ensure controlled spending.
Most families don't plan to run up high balances on their credit cards during the holidays but it happens. Nearly one-third of adults say they spent more than they planned on holiday gifts. (I think we all can relate). According to a recent survey, the average American spends approximately $775 on holiday gifts.
Being sensible, organizing your thoughts, and streamlining your shopping process are the best ways to keep from spending frivolously and doing damage to your bank account, or your credit card balances.
For starters, be aware that credit cards, especially those from department stores and specialty retailers, can have annual percentage rates (APRs) as high as 24 percent. Major credit cards may have lower rates, but these, too, are still significant. The interest rates can go up if you send in your payments later, if you are not able to pay the minimum amount.
Here are 8 ways to help keep your spending on track this holiday season.
1. Know your budget.
2. Make a list.
3. Shop before you shop.
4. Choose debit over credit.
5. Shop going out of business sales.
6. Shop after-Christmas sales.
7. Give gift certificates
8. Save money by having stores wrap your gifts if it is a complimentary service.
If credit cards aren't your preferred method of payment, consider a Merry Money Loan from Aggieland Credit Union. This once a year loan allows you to set a budget and stay on track with your spending. Our Merry Money Loan offers a lower interest rate than your average credit card. Visit our site to learn more.
What tips do you have to avoid over spending during the holidays?
Source: ABC News
Most families don't plan to run up high balances on their credit cards during the holidays but it happens. Nearly one-third of adults say they spent more than they planned on holiday gifts. (I think we all can relate). According to a recent survey, the average American spends approximately $775 on holiday gifts.
Being sensible, organizing your thoughts, and streamlining your shopping process are the best ways to keep from spending frivolously and doing damage to your bank account, or your credit card balances.
For starters, be aware that credit cards, especially those from department stores and specialty retailers, can have annual percentage rates (APRs) as high as 24 percent. Major credit cards may have lower rates, but these, too, are still significant. The interest rates can go up if you send in your payments later, if you are not able to pay the minimum amount.
Here are 8 ways to help keep your spending on track this holiday season.
1. Know your budget.
2. Make a list.
3. Shop before you shop.
4. Choose debit over credit.
5. Shop going out of business sales.
6. Shop after-Christmas sales.
7. Give gift certificates
8. Save money by having stores wrap your gifts if it is a complimentary service.
If credit cards aren't your preferred method of payment, consider a Merry Money Loan from Aggieland Credit Union. This once a year loan allows you to set a budget and stay on track with your spending. Our Merry Money Loan offers a lower interest rate than your average credit card. Visit our site to learn more.
What tips do you have to avoid over spending during the holidays?
Source: ABC News