You don’t have to go into debt during the holidays! With a little bit of pre-planning and determination, you can enjoy your holidays and stay out of debt. Here are some tips and tricks for staying out of debt when planning for the holidays and some tips for cleaning up your credit before you go back to school. Every little step helps!
How To Avoid Debt On Holidays
Ah, the holidays are upon us and it’s so tempting to run right out and buy everyone gifts! Hold on a minute, you don’t have that kind of money! Let’s slow down for a few minutes and figure out our best options.
It’s important to manage your expectations about your upcoming trip. Everyone loves presents and spending of course, but you don’t have to buy expensive gifts to show you care.
You need to be realistic about how much a trip will cost vs how much income and savings you have coming in. Going into debt is never a good option, and while an expensive dream trip is always desirable, it’s important that you manage your expectations about what you can afford to do.
What are your goals this holiday season? Setting goals helps to manage your budget. Make a list of everything you hope to accomplish and achieve before your trip, during your trip, and after your trip. Figure out how much it will cost. This will better help you plan for the future and save the money you need.
Set a budget for your holiday and stick to it. Don’t go overboard. How much money do you have leftover after your living essentials? Keep to your budget and after the holidays you’ll love yourself even more for sticking with it. When everyone else is scrambling to meet their credit card bills, you’ll be the one smiling.
Consider going in with other friends or family on a larger gift. Everyone will save money because you’ve just divided the price of a gift by however many friends or family members are in on the gift. It’s a great way to save money and still give a great gift. If you’re able to get financial help from friends or family to fund an upcoming trip, talk to them about pitching in. Every bit helps.
Give A “Priceless” Gift
If you’re on a budget, consider a DIY gift this season or for special occasions. You don’t have to be a professional to make a great homemade gift to keep down expenses. The internet is FULL of amazing, budget-friendly gift ideas. Try some cooking or baking. Or make a photo collage. Get a picture framed. It doesn’t matter as long as it’s from the heart. They’ll love it, and so will your wallet.
Find The Right Price For Your Holiday
Before pulling the trigger on the first and shiniest trip package you see, do a bit of workshopping around. You’ll be amazed at the deals you can find if you do a little digging. Call up various travel agents and see who can get you the best price.
If you can book your trip in the off-season, you’ll save a boatload of money and have just as much fun.
Find A Better Interest Rate For Your Home Mortgage
Saving on everyday spending items is a great way to avoid holiday debt, it’s not the only way to save money. If you own a home, shop around for lower interest rates and see if you can pay off your mortgage faster.
Even marginally lower rates can save thousands of dollars throughout your loan. Before you switch, however, make sure you’re aware of any exit fees for switching and how it compares to what you’re saving. If you need advice, a professional mortgage broker can let you know if switching makes sense for you.
These are just some of the many ways you can save money for your holiday. You can holiday debt-free, so try some of these tips and have fun without the burden of debt.Request An Appointment