Enjoying the Holidays and Staying out of Debt
Second only to vacations, the holiday season can spell an end to intelligent and well planned credit card usage. Much like vacations, holiday spending is powered by the rational machine that says:
• I’ve worked hard all year, I’m going to get my spouse this for Christmas
• Our child is only going to be this age once, lets shower him/her with gifts
• I’ve got the holiday spirit, let’s give each other great gifts!
These excuses can seem fine on the surface but they can seriously damage your long term financial stability. There are, however, steps you can take as a single person enjoying the holidays and as a husband or wife to make sure that the holiday season isn’t followed by a long winter of regret.
Make a budget and stick to it – While it can be tough to do, especially when you know your significant other really wants a particular item that is much too expensive, setting a budget for the holidays can be a great way to control spending. First, make a list of everyone that you are planning on buying gifts this season, and then assign an approximate dollar amount to that person. It can be tough to turn down that perfect gift for that special someone because it doesn’t fit into their assigned price range, but you will feel better about your decision once you open January’s credit card bills.
Stick to trusted online retailers – More and more shopping every holiday season is done online. What makes online shopping so popular is that you can browse an almost unlimited amount of merchandise and there is never any pressure to buy from an annoying sales person (assuming you don’t count pop-up ads). But some online retailers can say one thing and charge you another. A recent, and illegal, practice for some online stores is to offer great prices on their goods, and then make a huge profit off of shipping. A good rule of thumb is to stick with online stores that you have used before and were happy with the first time. Many people rush through their holiday shopping online and get taken for a ride by outrageous shipping.
Save your receipts – Many stores in malls hire extra help during the holiday season. These poor souls are usually asked to work extremely long hours for terrible pay and they can understandably get distracted and frustrated at their jobs. While it doesn’t happen to everyone, people do get overcharged at stores, especially when there is a line that extends around the corner, the heat is up too high and you are dealing with a minimum wage earner who was forced to skip their lunch break and is closing in on ten hours at their post. Save all of your holiday receipts to check them against your statements for the first two months after the holiday season just to be on the safe side. You might need them to prove to your credit card company that the scarf you bought was only $20.00, not $200.00.