Christmas shopping- Tips To Make It A Success- Part III
Bury your credit cards
Credit cards if not used sensibly can land you in a soup with debt accumulated that you will end paying for many months. True by spending on credit card the burden is postponed in the short run however some day you have to pay the money back. Also the interest charges will add further burden to your wallet.
If you are one compulsive shopper who cannot use credit card responsibly then we suggest that bury your credit card before embarking on that great shopping trip. Paying by cash will help you to keep a track of the amount you have spent vis-a-vis your budget. With credit card you just keep on swiping getting to know the pinch only a month later when you receive your statement. However if you have the ability to use credit card responsibly then it can be a great boon. Even then we suggest that you use credit card only when necessary to avoid spending too much. In fact it is best to use them only for online shopping or travelling.
In the worst case situation if you have accumulated huge credit card debt don’t panic. Think logically and you will be out of the mess. Work out a payment schedule whereby pay the company that charges the highest interest rate first. As far as possible pay as much as you can to get out of the debt and move onto the next. You can delay the payment for companies that charge lower interest rates maybe by just paying the minimum amount due.
Store Credit Cards
This is also the time when every retail store comes up with its card on which you get offers. Please don’t fall in this trap and apply for every store credit card under the sky. In the short run it can definitely save you money but in the long run you can end up with higher interest rates. Take into consideration the fact that incentives are offered to get as many sign-ups as possible, particularly during the holiday season when everyone’s shopping. After all the retail business is all about making money and the initial loss they make is later offset by profit made from these cards as you shop more often and pay interest on unpaid balances.
Last but not the least remember that Christmas is all about celebrations. It is not a gift giving competition where in you have to win by putting the most presents under the tree or by giving the most expensive gifts. Times are definitely hard but that should not stop you from enjoying the season. In the shopping stress don’t forget the real spirit of the festival which is togetherness.
Read more at: Christmas shopping- Tips To Make It A Success- Part II
