Now that we’ve stepped onto October, Christmas will be soon up on us and there are few holidays better known for good tidings, cheer and also the ability to push you further into credit card debt. So you must be wondering about how you could keep the first two characteristics of this holiday season and lose the last one. Well, with the extreme fervour and pomp and glory with which Christmas is celebrated in our nation, it is pretty tough to avoid burning a hole in our wallets. It might not be easy and shopping might not be as much fun but it is not impossible to get through the holiday season without falling into debt. You may read on the concerns of this article to check out the ways in which you can plan your finances way ahead of time so that you don’t run the risk of falling into high interest debt during Christmas.

1. Start saving early: This is sheer common sense! Although it is, still there are multitudes of Americans who rack up piles of debt during this holiday season and spend years after years in repaying their dues. In fact, experts and analysts are surprised to see the way in which Christmas hits the wallets of most people in the US. Everybody knows that it’s coming, it comes on the same day every year and you can’t even run from it. So, it is sheer common sense to save up for it. If you keep saving money at leas 4-5 months before Christmas, you will be less likely to accumulate credit card debt. Most often, simple financial skills like saving money can have the biggest positive impact on your finances. Since it’s almost the first week of October, do start saving now before it’s too late.
2. Draw a budget of how much you will spend: After spending Christmas every year, most people wonder at their credit card billing statements and think “Where did all the dollars go?” A very simple and harsh fact is that if you don’t have a leash on your finances, it is bound to go out of control. Hence, if you don’t want Christmas 2014 to be remembered as the time during which you became knee-deep in debt, formulate a budget ahead of time. Jot down the things that you’re going to buy and also mention the approximate costs so that you may know the amount of money that you’re going to spend. This way you can prepare yourself for saving money.
3. Beat the Christmas season: How about starting off with your Christmas shopping in the off season or right after the holidays have ended? Always try to keep a cautious eye on the bargains, sales and other discounts available in the stores throughout the year and don’t waste your time when you see that perfect gift at the perfect price. When you pick up the occasional gift during store sales, this will not only cost you less but it will also critically spread the costs out over a longer period of time so that your budget doesn’t take a large hit suddenly. Check out the discounts and try your best to leverage them and save money.
4. Get creative and try DIY: When you’re living on a tight budget and you’re also strapped for cash, you can get creative and use your creativity to get the upper hand. It often happens that a creative gift can often beat out the most expensive gift. If you interact with people and try to know about their likes and dislikes, you can even get some clues and hints about what they like and what they don’t. If the things can be made on your own, you can easily opt for DIY to save money.
5. Load up on quirky and unique affordable toys: Nowadays with the new generation, it seems that the idea of stocking stuffer gifts has reached some extreme proportions. iPods, video games, cameras, cellphones and DVDs have replaced the peppermint sticks, oranges and pennies of the early 20^th century. But is it really necessary to spend thousands of dollars on accumulating stuffers? Well, instead, you may try visiting some local dollar store and load up on unique and quirky yet affordable toys, treats, trinkets that won’t have a detrimental impact on your budget.
6. Shop online for more savings: Finding some great savings online has never been easier. Product ratings, cost comparisons and customer reviews make finding gifts online quick and easy. The internet can easily offer you with the information to make an informed decision as to whether the price that you’re paying is competitive and reasonable or you’re being duped on buying some product.

Therefore as we’re on the verge of celebrating Christmas 2014, we need to ensure that we’re on the right financial track and that we don’t incur debt. You may follow the above mentioned financial tips to avoid blowing a hole in your wallet. Debt is pretty common these days and there are even debt consolidation companies that can guide your way out of debt but when there are ways of avoiding the menace, why wouldn’t you do it?

Categories: General