Avoid Christmas Debt

"Christmas is a season of such infinite labour, as well as expense in the shopping and present-making line, that almost every woman I know is good for nothing in purse and person for a month afterwards, done up physically, and broken down financially". (FANNY KEMBLE, Further Records, Dec. 31, 1874)


From last year's Christmas only, all the families plan what gifts they want for next year's Christmas. Specially kids, round the year they plan what toys or gifts they want for the coming Christmas. Right from thanksgiving the shopping fever grips the people and lasts till Valentine's Day of the next year. People go on shopping spree and spend much more than they can afford.

The high bill spendings include home renovation, buying new home, buying 2nd car, sending gifts to relatives, lavish gettogethers, buying fancy items, romantic cruises, family vacations and so on. People spend more than they can afford, which pushes them to the brink of debt, and they go on paying off their debt for years. If the situation is not handled properly, it can lead to utter bankruptcy and badly hitting the credit scores.

You can follow certain things during this festive season to avoid debt:

1) Stop Spending On Impulse ---> Check out whether you really need the product or service. Just because your neighbor is having it or it's the current craze you needn't buy it.

2) Use Multiple Credit Cards ---> Use the credit cards which can earn you various gifts, discount schemes, gift vouchers and even airlmiles. But you need to keep a track of your cards and need to be disciplined while making payments.

3) Plan Your Budget ---> You just can't afford everything during Christmas. Prioritize your requirements and spend accordingly.


4) Avoid Last Minute ---> By shopping early you won't be forced to overspend. This will also give you time to shop around and find better bargains. Don't buy the first thing you see. Do some price research. Saving a buck or two can really mean a lot. Check online, see if you can find a better bargain online. Plan ahead and purchase gifts throughout the year when they are on sale rather than trying to do all your Christmas shopping at the last minute.

5) Black Friday Sales ---> Don’t just buy items for the sake of "saving money." Be prepared, have a list of what you need to get as Christmas presents or whatever, find those things on sale, and stick to your list!

6) Use Of Cash ---> Try to use cash to buy Christmas gifts this year. While spending through cards you never know how much you spent, but while using cash you know when your wallet is empty.

7) Admit It ---> Your family should know your financial situation. Admit that you are low on funds and can't afford all the things at a time.

8) Re gifting ---> Consider re gifting items to save money and avoid debt. Just because you can't use the item doesn't mean someone else can't.

9) Special Gifts ---> Consider giving gifts that are homemade or are a donation of your services rather than giving expensive store bought gifts.

10) Free Counseling ---> If in debt like situation, do go for free debt counseling and avoid Debt.