Tips For Debt Free Holiday Spending

The holidays are a time for giving, but for many people, they’re also a time for spending. The excitement of the holidays can also lead to overspending; and, often, going into debt. According to a recent survey, the average American plans to spend $1,000 on holiday gifts this year.

If you’re worried about racking up credit card bills that you can’t afford to pay off, here are a few tips for staying debt-free this holiday season.

First, make a budget and stick to it. Determine how much you can afford to spend on gifts, travel, and other holiday expenses, and then don’t exceed that amount. Break down what you think you can spend, and set a limit for the maximum amount to allow for extras.

Second, use cash instead of credit. Withdraw the amount of cash you plan to spend from your bank account at the beginning of the season, and then use that cash to pay for your holiday purchases. This will help you stay within your budget and avoid costly interest charges. The last thing you want going into the New Year is a massive credit card bill to pay down over the next year.

Third, start shopping early. If you wait until the last minute to buy gifts, you’ll be more likely to overspend. By starting your shopping early, you can take advantage of sales and find ways to save money. Although there are days for big deals and discounts, don’t forget retailers run savings through the end of the year.

Finally, resist the urge to splurge. Remember that it’s the thought that counts, not the price tag. If you stick to these tips, you’ll be able to enjoy a stress-free holiday season without going into debt.