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7 Tips To Avoid Overspending And Going Into Debt This Holiday Season

7 Tips To Avoid Overspending And Going Into Debt This Holiday Season

Holiday
It’s easy to go into debt during the holiday season. It’s not just money spent on gifts, but also entertainment and other holiday expenses.

It’s easy to go into debt during the holiday season. It’s not just money spent on gifts, but also entertainment and other holiday expenses.

And, it seems a majority of Americans realize this and plan on being on a budget this year. “According to the most recent CNBC and Acorns Invest in You survey conducted by SurveyMonkey, about half (49 percent) of Americans expect to spend about the same amount on gifts for friends and family this holiday season, and 36 percent said they expect to spend less. Only 13 percent of those surveyed plan to spend more on the holidays this year, CNBC reported.

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On average, consumers will spend $825 on gifts this year. This, according to NerdWallet, is up from $776 last year. NerdWallet also found that 41 million Americans are still paying off holiday credit card debt from last year.

But there are ways not to go into debt this holiday season. Here are seven of them.

Budget It

Make a holiday spending budget and stick to it. “Look carefully at your overall savings and budget to see how much money you can allocate to holiday purchases this year. Then make a list of everything you need to buy, including not only gifts but also food, decorations, or travel that you might need to purchase this time of year,” CNBC reported. 

Keep A Check On The Credit Cards

Don’t max out your credit cards on gift shopping. Use your credit cards wisely. 

“Using credit cards to earn rewards or cash back for holiday purchases can save you money, but only if you’re able to pay off the balance on your cards each month. The interest that you’ll have to pay on interest if you carry a balance will far outweigh the value of the rewards. Store cards, in particular, carry extremely high balances, so they’re not always the great deal that cashiers make them out to be when you’re checking out,” CNBC reported.

Put Gifts For Yourself on Backburner

Do your Christmas shopping for others first and wait until the holidays are over to treat yourself.  This tactic will help you stay on budget.

Buy At The Right Time

Depending on when you make your purchases, you can save a whole lot of money. 

According to shopping expert Trae Bodge, some consumers stick to their budget by shopping on high-profile shopping days like Black Friday and Cyber Monday. 

These days are good times to buy things like electronics, apparel, and beauty products. But for toys and outerwear deals it’s best to wait until later in December.

Maximize Those Gift Cards

Use any gift cards you have to buy gifts for people on your list — and try to combine them with coupons. “If you couple a 15 percent off gift card with a 40 percent off coupon, that’s a really big savings,” Bodge said. “You can also give a discounted gift card to someone else, and the recipient will never know that you bought it for a lower price.”

Hang On To Those Receipts

Some stores will give you a refund for the difference if the item you have purchased goes on sale soon after. So keep those receipts and check for sales after purchases. 

Don’t Overgive

Giving is good, but don’t overdo it. “The spirit of generosity during the holidays can be contagious, but you really don’t have to purchase presents for everyone you know, or spend as much as others do on gifts. Instead, consider creating homemade gifts for those close to you or asking a large group of friends or family members if they’d be interested in a gift swap rather than exchanging individual gifts as they’ve done in the past,” CNBC reported.