subject: When It's Bad to Use Credit Cards for Gifts [print this page] When It's Bad to Use Credit Cards for Gifts
I get it, you have a dozen names on your Christmas list and it means you have some serious shopping to do. But don't get too hung up on shopping alone. If you do, you might spend far more on your credit cards than necessary and this can lead to scary amounts of credit card debt.
Be mindful of savings as well. Christmas or any other festive occasion isn't an excuse to forget your budget. When all you care about is giving fancy gifts, you forget the real meaning of why you're giving. Therefore, go easy on your credit card, find where the prices are reasonable and cheap, and most importantly, use cash whenever you can.
Pay in cash and your finances are less likely to take a beating. Why? Because when people pay with physical cash in their hand, they are more aware of the cost of what they are buying. It helps make spending their hard earned money more real and keeps them focused despite the holiday season frenzy.
When using credit cards to buy things, people get a false sense of security that they can buy anything they want as long as they pay it back eventually. And it doesn't actually feel like they are spending any of their money now. As a result people often buy more than they can actually afford and before they know it, they have maxed out their credit limit and they have thousands of dollars of credit card debt. This is where debt struggle begins unfortunately.
You don't have to be a victim of a long Christmas gift shopping list. If you're brave enough to use physical cash, you'll enjoy the essence of gift giving more.
Take only the amount of cash you are willing to spend with you. Once you're out shopping, look for the best deals. Don't hesitate to use coupons, haggle if you're allowed to, and find more affordable alternatives on items on your list. You can try buying in bulk to benefit from wholesale prices, or shop online for cheaper options. If you know you can make the gift yourself with a little creativity, why not do so? There are many Do-It-Yourself ideas available on the Internet. Pick something you think the recipient would like and get your kids involved in the creation process - they'll find it fun and it can double as your bonding time.
These and some of they ways to keep your Christmas gift shopping list within your budget. Go over your list once more and determine which ones are a little excessive. Remember, Christmas is about giving, not bragging that you bought the biggest gift; so tuck away your credit cards and start scooping up what cash you have available.
