Ways to Avoid Overspending at Christmas

Through a recent survey many individuals and especially Laura Howard have been looking for ways to help consumers avoid the overspending done at holidays, such as Christmas. They are offering new ways to look at how to stick with your budget to avoid later worries. You will find methods on how to spend what you save, understanding the extras, and many other tips.

First when you are looking to save during Christmas rather than overspend you need to look at your budget. You should only spend the amount of money you have saved for the occasion. In the study it was found 37 percent of individuals surveyed borrow money during the Christmas season. The borrowed amount can come from credit cards, loans, or other avenues that they must pay back. To avoid this issue it is important to only spend the cash you’ve saved. Leave the credit cards at home and don’t overdraft your account. Instead create a budget.

You should also be aware of the extras. Many of us don’t factor in the extras in to the budget. Extras include party clothes, decorations, tip for the newspaper or milkman, and over course the wrapping paper and supplies you will need. Once you have allocated for these expenses in the budget you will be able to save money rather than overspend. Having a budget is the best method of avoiding spending too much.

Another tip is to play your shopping excursions. Don’t just wake up one day and head out. Know the stores you need to go to, and where the best deals are being offered. You shouldn’t just wander around the shops for inspiration. When you do that you encounter several other items you would like to purchase for other people that are not in the budget. The best thing is to buy what is on the list, and remember if you do purchase an item not on the list you can either take it back or substitute it for an item on the list. Just make sure to stay with the budget.

For other shopping tips you should not pay with a credit card. When you pay with a credit card this leaves you wide open for more in the budget. You tell yourself you’ll just pay it off later, but you encounter fees. Most credit cards have an interest rate of 15.9 percent. If you use the credit card you are looking at 11 months to pay off the actual debt rather than having it already paid for. This may mean you don’t get to get the greatest gifts for your family and maybe some friends will just get a card, but it is better to stick with a budget than to overspend with money you don’t have.

If you are going to pay with credit card you should choose the correct one. There are certain credit cards that offer cash back for Christmas purchases or flight miles. You will want a credit card with a low interest payment and the best rewards. Some of those cards are World MasterCard or Capital One. Keep in mind that if you pay off the card right after you get home or before the next statement you can be saved from the interest.

Back To Financial News December 2007

All About Prepaid Credit Cards
4.4 Million Still Paying for Last Christmas
Higher Credit Card Fees for UK Customers
September Sees UK Credit Cards Holding
Ways to Avoid Overspending at Christmas
What Factors Come In To Play When You Apply for a Credit Card
Draft Guidelines for Recovery Agents
Opt For Debt Consolidation
Adverse Borrowers Need to Act Now