How to Avoid Bad Debt This Christmas

As Christmas Eve approaches, many consumers will be rushing to finish their holiday shopping and preparations. And yet, a lot of people will be waking to a pile of credit card debt when the holidays are over. But this does not need to happen to you, especially not this year. Consider these practical tips to avoid bad debt this holiday season. Set a limit. How much can you afford to spend on gifts this year? Consider this carefully and set a definite budget. Be sure to stick to that limit. It might be tempting to spend a bit more than the amount you set but if you will plan ahead, you can give gifts to everyone you want and still stay within your limit. Make a list. This might seem like an obvious advice but surprisingly, a lot of people do their Christmas shopping without a list on hand. By creating a list, you can really think about the best gift for each person. This way you can be sure that the other person will like it and that you can afford it as well. Make your own gifts. Gifts don’t always need to be readily-bought from a store. Have you considered giving someone a present that you personally made by hand? Not only can you save money, handmade gifts are more special and oftentimes, better than what you can buy from stores. If you know how to knit, crochet, cross-stitch, or sew, put that skill to good use this Christmas season. Put together your own gift basket. Gift baskets can be expensive if you will buy them, but if you’re going to assemble a gift basket yourself, you can save a lot. For instance, if you want to put together a food basket, you can use coupons to buy grocery products and combine those with your own homemade cookies or preserves. If you want to give someone a beauty basket, you can even make your own homemade soap and body scrubs. You can find recipes for these online and they’re usually not difficult to make at all. Make room for extra expenses. The little cents can add up big so it’s important to set a budget for miscellaneous costs too. For example, don’t forget to set a budget for gifts or money you will give to the homeless man you always pass by the street, children who visit your house to sing Christmas carols, and the needy. Check your credit card limit. Are you planning to charge all the gifts you will buy on your credit cards? Be careful not to max out your limit as this can badly affect your credit score. Don’t forget the penalty fees that will add to your bill if you exceed your credit line. Shop around and compare. It’s always a good idea to shop around first and see which merchant sells at a more reasonable price. You’ll be surprised at how much you can save from your shopping spree if you follow this rule. You can easily compare prices from various shops online by visiting comparison websites.