With the holidays in full swing, there are a few things you’ll want to keep in mind so that you don’t fall behind with your finances. More and more these days, there are offers out there of easy cash, such as payday loans. Although this may seem like a tempting option to try because the process to obtain one is quick and easy, you should beware of these types of loans. They can be difficult to repay, and once you’ve missed a payment the interest rates can skyrocket. Do you best to never take out a loan for holiday gifts.
Another thing to keep in mind is to make a concerted effort to avoid going over your credit card limit. This is especially important. If you feel that you’re getting close to your limit it’s best to contact the creditors to see if they will raise your limit slightly so that you will avoid those over limit fees. Once you get into the over limit fee cycle, things can start to snowball. You may find it increasingly difficult to make the minimum payment, and if payments are missed then you could receive late fees along with over limit fees. It is even possible that the interest rates on your card could increase.
Don’t stress! There are still many ways to make the gift buying process painless. Consider giving fewer or smaller gifts, and if you have small kids, you can often find fun presents at the dollar store or thrift stores. Another idea is to try to get creative with gift giving. Sometimes, it is just as enjoyable to receive something like a holiday card, especially if it’s clear that a lot of thought and effort has been put into it. We all know we are in more difficult economic times, and we may not be celebrating in the same way we once did. The good news is that making just a few small adjustments can make the holidays just as memorable. For more tips on tackling debt during the holidays, read Clearpoint Credit Counseling Solutions’ article for some creative options.