Stay out of holiday debts

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By: skyden.dredge
on 27th Nov,2015

Like the festive season of every year, this year also average credit card debts of the people in the country are likely to go up.
Stay out of holiday debts

Like the festive season of every year, this year also average credit card debts of the people in the country are likely to go up. A variety of offers and ideas have also been pushed forward so as to increase the attraction of this plastic money. However, the reality is this the more you use cash, debit cards and checks and less you use credit cards, it would be better for you. Here we discuss about some ideas which will help you use credit cards judiciously and save some money. These tips are not however for the people who have excellent credit score and who are very good at managing their money. There are many who are not good at managing their money. These tips are for those people. In order to stay out of holiday debts, you should have proper planning and budgeting in place. Things that you must follow to contain your holiday debts are listed below.


Prepare a budget


In order to keep a check on your festival expenses, first of all, you are required to put in place a realistic budget. The budget should be set, keeping in mind the upcoming festive expenses. Make sure that your festival expenses do not exceed your budget allocations. If you plan your budget well before the actual festive season, you can help you save a lot of money.


Check your credit limits


It is important to check the credit limits of different credit cards before the festive season. If you think that credit limit of a particular credit card must be increased for shopping purposes, you can request your credit card issuer to do so. However, as a thumb rule, you need to ensure that you do not use more than 30% of your credit limit in each of your credit cards.


Keep track of your expenses


Every time you go out for festival shopping, you need to track all your expenses. The moment you feel that you can exceed the credit limit, you must stop then and there. It would be wise to pay the rest in cash. This prevents you from paying exorbitantly high rate of interest associated with credit card debts. 


Refrain from impulsive purchase


You need to refrain yourself from impulsive buying in the coming festive season. You must try to shop according to your shopping list. This in turn, helps you a lot to save some money. 


Transfer your balance to a 0% APR credit card


Another smart strategy would be to transfer your outstanding balance from your highest interest credit card to a 0% APR credit card. This helps you to pay off your balance faster.


Make the minimum payments


Whether it is a festive season or not, always make it sure to pay the minimum balance amount on all your credit cards. This keeps your debt elimination exercise going. 


The above mentioned tips will surely help you a lot to contain your festival expenses under control. 


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