Can you believe it’s time to start your holiday shopping? Your gift lists are in the works and you are scraping your savings to make the most out of your holiday shopping amidst trying to get out of debt. However, this is the time that you have to beware of the most common holiday credit mistakes.
Holiday Credit Mistakes – What’s Most Common?
If you are already wondering about how to get out of credit card debt, holiday shopping can be a stressful affair. However, in situations such as this, using cash is absolutely the right way to go. This way you avoid potential holiday credit mistakes and avoid stacking up even more consumer debt.
However, this option is not the best for everyone out there. If you are in good credit standing then using cash prevents you from making use of earning various rewards. These rewards are typically not available for consumers paying with cash or debit cards. Some of the benefits include interest-free payment plans, extended warranties, and damage protection benefits. Let’s break down some of the most common holiday credit mistakes.
Missing Out on Rewards
Credit card companies offer cash back on most of your purchases. When you decide to pay cash for your holiday shopping list you also forfeit the free money. In addition, banks offer special deals with certain dealers for credit cards. You might miss out on these if you pay by cash.
Avoid Retail Credit Card Traps
It is common to hear a cashier explain the 20% discount if you sign up for their store credit card. What they don’t tell you is how much interest you will be paying if you miss out a payment. If you are already struggling with managing debt, this can be a potential money pitfall. Plus, you probably don’t even need another credit card!
Spend Within the Budget
One of the biggest holiday credit mistakes is assuming you can pay your bills down the line. Not being aware of your budget restrictions and your financial capacity is the first mistake. Therefore, try not to max out your credit cards during the holidays. Pay your bills on time to prevent taking a hit on your score. Rebuilding credit may take longer than the short-term happiness you gain over some holiday shopping.
If you are having trouble getting out of debt, speak with a certified counselor at ACCC today. Call 800-769-3571.