Tips On Managing Credit Card Bills This Holiday Season

The holiday season is always a time when we find ourselves spending more money

. For many people, the holidays are a time of spending more money than they can afford. This is accomplished when they charge too much on their credit cards. After the holiday excitement is over, they are faced with the huge bill that includes enormously high interest rates. The good news is there are ways consumers can practice financial self control and develop the skills to keeping their credit card bills at manageable levels.

The following outlines a number of tips on managing credit card bills this holiday season:

Limit Holiday Card Purchases: The best way to avoid credit debt is not to put any gift purchases on the credit card. However, this is not always feasible so you should set a limit of how much you will charge to the card. To avoid the temptation, you can always contact your credit card company and tell them to lower your limit. Remember, it is not just price of the gift you will have to pay, but also the high interest charges.

Use Cash for Gifts: A helpful way to avoid using the credit card is to use cash. A great way to do this is to set up a holiday savings account where you make a monthly cash deposit and when the holidays arrive, use the cash from the account to purchase gifts. You just have to set aside some money from each paycheck.

Budget: It is wise to create a budget for the holidays so you know how much you can spend. By doing so, you can make cutbacks in other areas so that you can stick to your budget. It is important to stick to the budget no matter how difficult. Make a list of everything you have to buy and look for sales on the items you want to buy for gifts. Comparison shopping is also an effective shopping method. It will help you get the best possible price.

Avoid Store Credit Card Accounts: Many retailers will extend special offers to new card holders. These special incentives may be attractive, however, you could end up charging more items to the card than you can actually afford.

Avoid Impulse Buying: If you are just going to the store to browse instead buying something specific, leave your credit card at home. When you have your card, you are likely to make multiple purchases of things you that you do not really need. Carrying cash only will limit impulse buying and you will be happy that you did once the holidays are over and you realize that you are still in good financial shape.

The key to avoiding accumulating credit card debt during the holidays is not to buy things that you cannot afford. Remember, when you charge items to your credit card, you are actually borrowing against future income. Charging only what you can afford and using cash as much as possible will make the holiday season even merrier.

by: Adriana Noton

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