subject: Credit Cards And Christmas Time 2012 [print this page] Well there is the saying about two of lifes certainties being death and taxes. That could just as easily read credit cards and Christmas. The holiday, festive season comes around as regular as clockwork and so many people buy presents with often the simplest and, in some cases, the only way of paying is with plastic. Of course if thats a debit card then no problem. But if youre doing most or all of your Christmas spending via your credit card or cards then there are some traps for young and not so young players.
Its easy to be wise after the event but seriously, if you want to avoid credit card pain in the New Year, save for Christmas in June. As silly as it sounds, putting a little away each week means youll have less need for your fantastic plastic in December. Some companies sell hampers for Christmas and their success is based on two things:
Good contents in their hampers
Having customers pay the total price on a monthly plan
But if you are using your credit card for Christmas, give yourself a bit of time. Leaving your shopping until the last minute means you often have to buy whatevers available there and then. By starting your shopping early and checking a variety of prices, you can save money and thus spend less on your card.
If you have more than one credit card, use the card with the lower interest rate or transfer debt from the higher interest card to the card with the lower rate. Because many credit cards have an interest rate starting with a 2, you can soon rack up the debt. So if you do spend big over Christmas, aim to pay off all or a large chunk of your debt in January when your statement arrives. Credit cards are a great convenience but their interest rate can become a burden.
If you are going to use your card, make sure you take advantage of any special deals. There might be a period of no interest for a month or your spending might be linked to a special offer re frequent flyer points. Be aware of whats happening rather than blindly spend thinking youll worry about repayments later. Another re-arranged saying is spend in haste and repent at leisure.
Finally, work to a plan. Have a plan listing what you will spend on each person. Stick to that plan. Make sure it is a reasonable amount bearing in mind its the thought that counts. And then, knowing your total spending limit, stick to it, and draw up a second plan on how you will repay the debt your credit card will develop. Its all about being sensible, being clever and making sure your holiday season is fun and happy well into the New Year. And if you want to be really clever, make a plan for the following Christmas and snap up some bargains in the January sales.
