Here’s some food for thought as we countdown to the holiday season: According to Consumer Reports, 13.6 million Americans are still repaying bills they racked up from last Christmas.
Not exactly the type of red you want to be sporting as the gift-giving season approaches.
Money is a huge concern for cash-strapped consumers throughout the year, but during the months of November and December, coming up with ways to fund a festive holiday is a worry that seems to grow as fast as the mercury dips.
With less than two weeks until Thanksgiving and just over a month until Christmas, now is the time to formulate a plan for holiday spending. Your goal should be to start 2012 minus the debt hangover.
So how do you accomplish that?
Here are a few tips:
Cash Only: Leave your credit cards at home when you go holiday shopping. Instead, monitor your spending by using cash only. By doing so, you can avoid digging yourself deeper into debt and chances are you will spend less since you are limited to the money you have in your wallet.
Shop Early: Don’t fall victim to those last-minute holiday shopping sprees. You can eliminate holiday debt by taking advantage of early-bird sales. What’s more, if you go gift hunting early enough in the season you have the opportunity to comparison shop instead of being forced to pay full-price because you procrastinated.
Budget: Make a list of all your discretionary income. Next, budget how much of that total you want to spend on gifts. Then, jot down the names of the people you absolutely have to buy a present for. The key is to plan for the gifts to fit the budget, rather than selecting random gifts and going into to debt trying to purchase them.
Give the Gift of Love: If you find that you are simply too cash-strapped to afford a slew of extravagant presents this holiday season, simply give the gift of love. Focus on spending time with family and friends rather than trolling around in a mall spending money on material items that your loved one may not even appreciate.