Christmas is coming that means its time for Christmas-related activities that costs money is on your way. Top on the list are christmas shopping, christmas traveling, and entertainment which will surely cost you. Credit cards will take and provide an easy way to buy stuffs and pay your expenses for sure. According to consumer reports most of the consumers are still paying off credit card purchases from last holiday season. For you not to suffer this kind of burden one must use credit cards with caution especially around the holidays.
Here is the Top 10 step plan that guarantees a calmer, less costly Christmas and free from holiday credit card debt.
1. Act and Save now. Save some amount and refrain from buying unecessary things. Pay cash whenever you buy at most time. If you've been buying and eating out, you can prepare your own lunch from home and take it to work or you can just eat heavy meals at home instead of taking snacks at work.
2. Make sure to keep record of all the things purchase and the expenses you have this holiday. Make a buget plan out of it so that next holiday season you'll be able to anticipate and not to underestimate or exceed your expenses.
3. Don’t carry lots of cards. Shopping habits must be controlled or minimize before the holiday season starts. Don't add a lot more on your credits if you can't afford to pay off your credit card in November. Being generous by giving gifts to family is not good if you are being drown into debt.
4. Don’t take your cards out with you. Always stick on you budget by paying in cash, this way you'll avoid impulse spending. Remember spend less to keep more.
5. Verify the credit limit on your credit card. Make sure you are aware of your limit before purchasing during holiday. If you keep on purchasing with your limit that has been lowered, you might exceed from your credit limit. Lower credit score will give you significantly higher annual percentage rate.
6. Apply for new credit card only if the card has a 0% introductory rate for purchases for six or 12 months. You can save yourself a lot of interest but make sure to pay it before interest charges begin.
7. Recognise the early signs of a credit card debt problem. Calculate the cost of adding charges to your credit card if you carry a balance. This will surely discouraged you to use your credit card. Just imagine of having a higher APR from your credits, you will pay an additional amount just for interest. Better settle your credits before taking into consideration to use your credit card.
8. Pay your balance in full each month. If you are going to carry a balance, you can always contact your issuer and negotiate, ask for lower rate. Negotiate with them rather thank not paying your accountabilities.
9. Most of the credit cards offer reward points. Use your credit card reward points for holiday shopping. You can use it to buy gifts almost in any retailers upon purchase.
10. Be familiar to the partner programs of your credit card issuer. These partner programs usually offers discounts and bonuses for online purchases on some companies. These partner programs can help you save more on your credit card purchases.
Credit cards are not bad if you only know how to use them in the right way. The above steps could save you from debt this holiday season. So what's your tricks and tips in saving and avoiding credit card debts this holidays? Feel free to drop your comments.
