Picking up from where 7 Holiday Spending Mistakes to Avoid (Pt. 1) left off, below we will point out some more common holiday spending mistakes to sidestep this year.
Mistake 3 – Charging everything.
In the frenzy to get all of your holiday shopping done, whipping out your credit cards to charge everything can seem easy. However, this is another holiday spending mistake to avoid because it can cause you to max out the credit cards you rely on for day-to-day purchases.
Instead of relying solely on credit cards for your holiday spending this year, consider using your debit card or even cash. While these alternatives to credit cards can prevent you from maxing out your credit cards, they can also help you stick to a strict budget so that you don’t end up spending more than you plan.
Mistake 4 – Opening up new lines of credit when other lines have been maxed out.
This is one of the most detrimental holiday spending mistakes people can make, and it’s often an easy trap to fall into as retailers and department stores try to entice you with various deals to sign up for their exclusive cards.
While you may be able to take advantage of some deals when it comes to opening up retailer credit cards, if you are already struggling with credit card debt, you should keep in mind that:
- Retailer credit cards are often associated with very high interest rates.
- Offers of “no interest” for some period of time can come back to bite you if you are not able to pay off the debt in full before the interest hits (as these types of cards can have astronomical interest rates).
- You may want to cut back your holiday shopping list this year if debt and maxed out credit cards are an issue for you.
Mistake 5 – Missing the first payments for holiday shopping bills.
With all of the planning and things that need to get done during the holidays, it’s easy for people to forget about the bills they have to pay, to miss payments for new bills (such as new credit cards they’ve opened) and to start digging themselves into some debt troubles.
To keep track of everything and avoid missing any of your bill payments during the holidays, consider:
- Putting your debt obligations on an electronic or physical calendar so you can easily keep track of them
- Setting up automatic payment options so that you don’t miss any payments
- Paying bills as soon as you receive them so you don’t forget about them.
Don’t miss the upcoming conclusion of this blog series for some final important tips on how to avoid common holiday spending mistakes!
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