How To Avoid Credit Card Debt This Christmas

It is the time of year to start pulling out the credit card and do some crazy shopping. That means that it is also the time of year to go into heavy debt that will influence your lifestyle until the debt is paid off. If you’re tired of paying off bills for months after Christmas and don’t want it to happen again look at these handy tips. You don’t have to get into debt this Christmas if you don’t want to.

1. Avoid using your credit card

While this may seem very obvious and basic is the one thing that will help you stay out of debt the most so it needs to be noted once again. While you may not be able to stop using your credit card at Christmas you can still try to avoid using it whenever possible. Start getting in the habit of using cash or a debit card to make your purchases whenever you can to avoid a heavy debt load in the months to come.
2. Start making a budget now

Figure out how much money you will need for Christmas and how much time is left to save up that amount. Break up the final total into sections according to how many weeks are left to save. If it is possible to save up enough before Christmas then start putting money away now. If you can’t possibly save enough in that time frame then consider lowering the amount of money you spend at Christmas. This way you won’t have to dip too much into your credit card.

3. Get a balance transfer credit card

If you are already struggling with debt on one of your credit cards you should take a look at balance transfer credit cards. If you get a card with a 0% transfer offer you will not have to pay any interest for six months on most cards. This will help you save money on interest and take the stress out of building up additional debt. Don’t use this card for any purchases, however, since your repayments will not be put towards the purchase balance until the balance transfer has been totally repaid.

4. Shop online

Some of the best deals available are on the Internet and you can shop around for the best prices in the convenience of your own home. You’ll also save money on gas and parking and can plan your spending more wisely. Best of all, you won’t have to fight the crowds and panic about your shopping.

5. Shop early

It will help you stay on budget if you start shopping early. You be able to scratch people off your list as you buy their gifts, and be able to look for sales before the prices get marked up for Christmas. If you start shopping now you will be able to make controlled decisions about your gifts instead of spending money foolishly on presents at the last minute. You will be able to put more thought into each gift and feel better about giving them away.

6. Make homemade gifts

If you really want to avoid getting into debt this Christmas let everyone know ahead of time that you are going to be giving away homemade gifts. This may not work for children, and you will still probably have to spend some money for their gifts, but if you go homemade for the adults on your list you can reduce your spending by half or more. Simply take some time to plan out a gift that you know they’d really like and start working on it early so that it is ready in time for Christmas.

Timothy Ng is an experienced personal finance writer, specializing in credit card comparison. Check out his guide to best credit cards where he will step you through the process of finding the best credit card for you.