Every year, many people spend when they simple could not afford it. And it all seems to happen in the last few weeks before Christmas. Suddenly, we remember that present we forgot, we give in to kids' demands for an iPod, we buy new clothes to wear on Christmas Day.. and that little plastic devil - the credit card - let us delay the worrying "until next year". However with credit card interest rates at such high levels, the debt for some people only gets worse. What can you do?
Know how much you can afford to spend on shopping to avoid a financial drama.
Prevention is the best cure
Here are a few rules you should cut out and keep in your wallet over the next few weeks.
- Arm yourself with a list to avoid a stressful and expensive holiday shopping season. You will be able to avoid hours of aimless browsing for gifts and would not be tempted to overspend.
- Say no to the kids if you are unable to afford the gift there and then. Educate the kids. Stay firm. Explain why they could not have all the latest gadgets.
- Pay for item with cash only. Before you make a purchase, try to bargain for a better deal, particularly when you have cash. Saving a few dollars helps the bottom line.
- Use a debit card rather than a credit card.
- Take your credit card out of your wallet before shopping, to stop the impulse purchase. If you need to use your credit card, make sure you can afford to pay the balance in full before the due date. Use the best card.
- Set a budget for the gifts.
- Start planning for next year by saving with each pay packet over the whole year.
- There is nothing nicer than receiving a quality Christmas card. The only problem is they can be expensive. Buy them in the post-Christmas sales and put them away for the next year.
