The holidays are the most exciting vacations of all. You get your day off from work and from school, get to eat and meet with your family and have a good time, and the most enjoying part, gifts! With every occasion, gifts are rarely forgotten especially when we have a lot of people on mind that we want to give these gifts to. This is the time when we spend most and not really think about how it affects our budget. As a result, most of the time we end up paying for a large balance and sometimes even have difficulty in paying them back.
Can I use my credit card to buy gifts for the holidays?
Yes, of course. Sometimes when the holidays come and we do not have enough funds in our savings account to pay for gifts, we turn to our handy credit cards. And to entice credit card holders to spend on their credit card even if they have money to buy it, discounts are given when they shop at a particular store. This is the time where credit card companies take advantage of the spending spree of their customers so they try their very best to lure their customers into spending more.
What can I do to prevent overspending?
Even if you do not have the money to buy gifts and you plan to use a credit card to take care of everything, you need to make a list. Before you purchase these things, you need to canvass what you can afford. Based on your salary or income, you now have an idea on how much you can pay for. Establish a budget and afterwards, add up the cost on your list and make sure that you do not go over your budget because if you do, you will be in trouble.
Banks are giving me discounts for the holidays. Should I buy it?
Well, this is one way for you to open up an account that you do not need. As much as possible, keep a few credit cards, only the ones that are most helpful for you. And if the only reason you are getting this credit card is to have the discount for the holidays then just forget about it. If you go through with it, you will end up with more debt than before and it is difficult to get out of.
I can max out my credit card since it’s the holidays. Can’t I?
Maxing out is not a good idea. Finance charges can be a pain. If you are not able to pay for your debt because you maxed out your card, you will be charged for it. Plus, you will not have room for emergency funds.