From Black Friday onwards, the shopping season is at its highest. The average American spends around $998 on holiday shopping. That includes presents, decor, food, and more.
Among the American shoppers, 30% prefer to use their credit cards to pay for at least some of their purchases.
The convenience of using credit cards, especially online shopping, makes it too easy for people to overspend. But to avoid going overboard, Good Neighbors Credit Union wants you to remember these good practices:
Do Set a Strict Budget For Your Credit Card Spending This Holiday
Have your gift list ready so you can have an exact idea of how much you need. Plan how much you can spend on each gift. If you find out that you don’t have enough budget for it, wait until your next paycheck to buy it. Save Up Your Own Money For Holiday Shopping
For every holiday, set aside a certain amount of money. And make a habit of saving up that amount every month. This way, you won’t be tempted to use your credit card to pay for everything.
Do Take Time to Learn and Understand Available Rewards Programs
You can maximize the use of your credit card rewards. Credit card companies love to give high rewards for popular shopping items. So, knowing which items you can get the highest rewards for will help you save money.
Do Try to Lower Your Interest Rate
If you have regular credit cards, ask your credit card company to lower your interest rate. Most credit card companies will accommodate such requests, especially if you are a good payer. Another option is to transfer your balance to a credit card with a lower interest rate.
Do Not Forget to Track Your Purchases
It’s essential to track all your purchases. By keeping a record, you will better understand how much you’ve spent on holiday shopping. That way, you can plan how much money you should have left for the following month’s bills.
Do Not Chase Discounts
It’s good to buy sale items, especially when you need them. But don’t buy something just because it’s on sale. Make sure you need it before you buy it. Buying something on sale even if you don’t need it is not saving but actually wasting money.
Do Not Give In to Impulse Buying
Impulse buying can make you spend way more than you can afford. Impulse buying is having a strong desire to buy something without thinking of anything else. This practice can lead to buying things that you don’t need. The temptation is stronger during the holidays when awesome stuff is on sale and products are marketed in a very enticing way. If you are an impulse buyer, it might be a good idea to delete shopping apps on your devices and steer clear from shops once you’re done buying the things that are on your list. This way, you won’t be tempted!
I believe that we can enjoy our holidays without the worries of breaking our bank. Just make sure you stick to these good practices shared by Good Neighbors Credit Union so you can enjoy the holidays and take care of your finances at the same time!
Good Neighbors Credit Union is your local credit union in Buffalo, NY. We have a wide range of financial products that are designed to help you save money and make your money work for you. We have a full suite of banking solutions without the extra costs – that includes checking accounts, CDs, mortgages, credit cards, and loans. Contact us today to know how we can help you!