Did you know that America spends more on holiday shopping than any other country in the world? At the same time, Americans are also more likely to go in debt to pay for holiday spending, survey says.
According to Magnify Money, 1 out of 4 Americans will go in debt this holiday season that will even linger for more than a month. Last year’s survey results showed that the average shopper added $1,073 of holiday debt.
Well, that’s a bad start for the New Year. But if you want to ensure a debt-free Christmas, here are 5 helpful tips & hacks to consider.
1. Set a budget and stick to it!
Take a moment to assess your current financial situation and determine how much you can spend for this year’s holiday. Work around that amount to plan out all your holiday expenses – gifts, décor, food, etc.
2. Pay yourself first.
Don’t spend all of your 13th month paycheck to splurge on Christmas shopping. Make sure you set aside a big portion of it to bulk up your savings or pay existing debts.
3. Use cash.
Avoid using your credit card to finance your holiday purchases. Go back to Tip #1. Withdraw the amount of money you had budgeted for holiday shopping and use that (ONLY THAT) for all the holiday expenses. When it runs out, then it runs out. So make a conscious effort to be smart in your purchases.
4. Shop during Black Friday.
There are tons of deals online and in stores the day after Thanksgiving. Take advantage of Black Friday and Cyber Monday sales to increase savings and make the most out of your budget.
5. Compare prices.
Again, if you want to make the most of out of your allotted budget, you have to search for the best value for your buck. Using price matching sites or apps like PriceGrabber is perfect to compare prices, track consumer purchases and product pricing trends.
Keep in mind that a debt-free Christmas is the best gift to give yourself and your family. Without financial stress, your holidays will be even more cheerful & enjoyable.