There is nothing easier than overspending during the holidays. Vacations or family celebrations can be similarly stressful. These special occasions should be approached with a spending plan and a budget. You can prevent credit card debt from adding up now by managing your spending.
In 2022, 35% of Americans will have holiday debt, according to a new study by LendingTree. The average amount was $1,549, the highest level since 2015 when the survey was first conducted. Three-quarters of those who took on holiday debt said it would take at least five months to repay it.
How can you manage your holiday debt? Here are some tips for you!
Pay off a Set Amount
PwC’s survey found that more than half of holiday shoppers planned to pay with a credit card. There are more than $9,000 in credit card debts in the average household. The balances on American consumers’ credit cards had risen by 15% from the previous year by November of last year, reaching their highest level in 20 years, according to the Federal Reserve Bank of New York. Your additional holiday debt can be paid off to ease some of the strain on your finances.
“If you’re strapped for cash today, plan for tomorrow,” said Nicole Cope, director of wealth strategies at Ally. She advises making a resolution to pay off any high-interest credit card debt as soon as possible in 2023 and then setting a budgetary goal of doing so in three to five months.
Know What You Want and the Best Time to Buy It
Make a list of everyone you need to buy for, then start thinking of potential gifts. Have a plan for your holiday shopping well in advance, and keep an eye out for those presents all year long. To help you find the best deals, carefully go over the weekly ads from your favorite stores or use a service like pricegrabber.com, which lets you compare prices on thousands of products like electronics, furniture, books, movies, and even groceries.
Spend some time researching the ideal times to purchase expensive items. Bicycles and sporting goods, for instance, frequently go on sale in January and February, while large home appliances are typically available at reduced prices in September and October. If you have a clear idea of what you want to buy, you’ll have plenty of time to take advantage of sales and avoid paying inflated prices as the holidays approach.
Check Your Credit Score
Check your credit report and buy a credit score to get a sense of where you stand financially and how your holiday spending may have affected your credit. It is also crucial to make sure that your credit report is accurate when there is a lot of activity on your credit accounts. Get a new score later to determine how your position in the risk spectrum has changed after you’ve had time to accomplish your objectives and pay off your debt. The holiday season has come and gone, which may mean debt begins to pile up. Now is a time when you get to spend time with your loved ones, go shopping, buy gifts, and pay bills or go over a spending plan. However, with Breeze Lease‘s lease solutions, you won’t have to worry about holiday bills or credit card payments. Get started with our lease solutions now! Contact us to discuss the best ways to help you enjoy your holidays to the fullest.