Managing Holiday Debt
The holiday season beckons every single year. It’s natural to delight in all the joyous parties and treats around. Cocktails, office parties and holiday shopping can be merry indeed, but you have to be careful not to let expenses get over the top and leave you feeling blue about holiday debt.
You tend to spend on gifts for family, friends and business associates. Apart from the gifts, parties can also be a major cause of holiday debt. You can easily end up spending a big chunk of change during the holiday season. Fortunately, planning in advance can help you avoid holiday debt.
The trick is to stay prepared and anticipate all expenses beforehand. Before the holiday season sets in, plan out your family and business expenses. There are ways to spend less for gifts and parties. Remember, you do not have to be stingy; you just need to be smart. Here are a few tips and tricks to stay debt-free and keep your holidays bright:
• Cut down on your list. You do not need to buy gifts for everyone you know. Start sending cards to acquaintances and distant relatives. You can end up saving a lot of money.
• Determine how much you are going to spend on each person. Consider smaller gifts and budget for the cost of stamps, shipping and cards too.
• Make a budget. Do not let the gross expenses exceed your budgeted amount. If it does, make the necessary adjustments to bring the amount down.
• Remember that the holidays are not just about expensive presents. If you have creative skills, put them to good use. A painting or a knitted sweater carries more sentimental value than any store-bought gift. Similarly, consider home-made cookies and beverages for parties to cut costs and add a personal touch.
• Make a shopping list and carry it with you. Start early and take every opportunity to shop. If you wait for the last minute, you may have to settle for overspending and miss out on sales or discounts.
• Online shopping is a good way to cut down on conveyance charges. However, make sure there are no hidden charges when e-shopping. Such unaccounted expenses can make a dent in your budget.
• Before the holidays begin, make some extra dough by working a part-time job. Save up a bit more than usual.
Since it’s the holiday season, credit card companies might be willing to lower interest rates. You can negotiate for such deals so you can worry less about payments later. Take advantage of the holiday season and make using your credit card worthwhile. The overall strategy is to have a good debt management plan so that you can be debt free. If your plans succeed, you can end up enjoying a bright holiday season without worrying about future debt hassles.
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