Cash or Credit?
It’s a fairly innocuous question at the end of any shopping experience. Although dismissing the cash or credit question is a huge holiday hazard many of us fall victim. The end of the year is an easy way to rack up a large credit card bill. When January rolls around receiving the large bill could be the beginning of a slow spiral of missing credit card payments and mounting debt.
“How do I prevent a debt spiral for the beginning of 2015?”
Preventing credit card debt begins now with proper planning for the holiday season. It’s easy to get carried away with gift giving and donations. Keep a list of those you plan to give a gift this holiday season. With this information, prepare a simple budget for all your holiday spending. This simplified budget will assist you to keep your holiday spending in check.
During this time of year, many stores and credit card companies ramp up incentivization to entice higher spending from consumers. Resist any urge to open any new lines of credit during the holidays. With the extra credit, many consumers are tempted to use the extra liquidity.
Watch out for an easy consequence of over spending and maxing out of credit cards, is you may miss out on New Year’s Eve parties. If you spend all your money on gifts and charities you will not have any money left for the most important party of the year, New Year’s Eve! If you plan on hosting or traveling anywhere for New Year’s Eve, planning ahead and being realistic about your credit card debt is prudent in order to avoid any awkward situations.
Do you need assistance with your credit card debt? We may be able help you if you are receiving credit card collection calls. We offer free consultations!