A man in a Christmas sweater looks distressed while viewing bills

7 Ways to Avoid Holiday Debt This Season

As holiday season gets underway, many people are busy looking through store websites and flyers that come in our mailboxes. We are anxiously anticipating the release of the latest holiday gadgets and goodies. According to CNBC, last year many Americans racked up more than $1,000 in debt last holiday season. To avoid finding yourself in debt this holiday season, here are seven things that you can do.

Create a Realistic Budget

Before you start buying gifts, sit down and determine how much money you have to spend this holiday. Now, work backwards to determine how much money you would like to spend on each of your gift recipients. This may require you to be more creative in your gift giving when it comes time to spread the holiday cheer.

Creativity is Always Appreciated

Take some time to scroll through Pinterest to find some unique holiday gift giving ideas. Teachers and grandparents love to get gifts that are made by hand and they are budget friendly too. Some great examples of creative gift ideas are handmade soaps and bath bombs or treats like chocolates or cookies. Other ideas are giving the gift of an experience. Offer to take your friend out after the holiday season has calmed down so you can spend time together without all the hustle and bustle. This also helps you spread out budget past December.

Stay Away from Store Credit Cards

It is tempting to open a store credit card when they are offering you !0-15% off your total purchase prices. After all, you are saving money, right? However keeping track of the amount you are spending gets more difficult as you open more lines of credit. Keep your spending in as few places as possible and try to spend cash when you can to avoid the “credit card hangover” in January. Remember that opening more credit cards means more lines of credit and banks will see this as a risk to your overall credit score.

Look for Sales

Once you have set your budget and created your list of gift to give, find the best price. If a trip is in your plans as a gift for your family, sites like Hopper can help you track prices for airfare and hotels. It lets you know when the best prices will be coming out. There are more apps out there for everything from department store to online shopping sites. Remember to only purchase what you intended to buy and avoid impulsive purchases.

Get Together During Happy Hours

With all the time we spend shopping and finishing big projects at work, people are looking for ways to get together during the holiday season and spread some cheer but eating out can be a strain on your budget. Suggest that you meet up for happy hours where drinks can be 2 for 1 or you can eat an appetizer as your meal. Remember you can always skip the drinks if you are the designated driver.

Think Economically When It Comes to Transportation

If you usually drive to your destination for the holidays, consider using gas apps that can help you find the best prices along your route. If driving includes tolls and long waits on the highways, you may want to consider an alternate form of transportation like the bus or train. Price out all your options.

Party Ideas

If throwing a holiday party is something you love to do, here are a two suggestions for how you can make more budget friendly. One ideas is to make it a potluck. Ask your friends to bring their favorite holiday dishes. Assign a category like drinks, appetizers or desserts and you can supply the paper products and the space. Another suggestion is to make it a dessert only party. Baking is a great holiday tradition and what better way to celebrate than with homemade goodies.

Spending time with friends and family is the most important aspect of the holiday. Remember to stick to your budget and more importantly, give the gift of time.

If you are burdened with high amounts of credit card debt and are struggling to make your payments, or you’re just not seeing your balances go down, call Timberline Financial today for a FREE financial analysis.  Our team of highly skilled professionals will evaluate your current situation to see if you may qualify for one of our debt relief programs.  You don’t have to struggle with high-interest credit card debt any longer.  Call (855) 250-8329 or get in touch with us by sending a message through our website https://timberlinefinancial.com.