As the gift-giving rush of the holiday season draws near, it is important that people remember to spend within their means and avoid accumulating amounts of debt that they cannot afford. Irresistible Black Friday deals and the pressure to purchase gifts can lead a person to spend more than they should. To ensure a financially prosperous holiday season, our firm has come up with some holiday spending tips that can keep you within your budget.
Keep Credit Card Purchases to a Minimum
Credit cards can be dangerous, as they can give people a false feeling that they can purchase more gifts than they can afford. The truth is that making purchases on credit can actually end up costing much more than their original value, as finance charges and interest can add up to a staggering amount. If you are going to purchase gifts, pay cash as often as you can. You will end up paying less, and your credit score will thank you for it.
Whenever you spend more than 30% of your available credit, your credit score takes a hit. It is always recommended that you keep your balance under this number in order to maintain a good financial standing. Additionally, keeping a large amount of available credit can be useful should an emergency expense ever occur.
Remember to Save
During the holidays, it is important that you dedicate a portion of each paycheck to savings in order to keep your finances in order. If you have not already started saving, it is imperative that you start as soon as possible. You never know when you may need to make a large expenditure. Make sure you are prepared for a worst-case scenario.
Stick to Your Budget and List
Do not overspend if you are unable to afford it. Set a strict budget and adhere to it, no matter what. Along with a budget, making a list of who you are shopping for can help keep you on track and away from a “one for you, one for me” mindset. If you only need one item, avoid “buy two, get one free” sales that try to sell you more than you need. This can be difficult, but being disciplined with your money can keep you from digging a financial hole over the holidays.
Pursue a Debt-Free Future – Call (312) 957-8077
If you are struggling to make ends meet, Chicago bankruptcy attorney Joseph P. Doyle can walk you through the process of filing for bankruptcy and get you on the road toward a financially prosperous future. With our firm’s trusted advocacy and extensive knowledge, we can get you through this difficult time and establish a customized plan to eliminate your debt.
We offer free consultations to all that approach us for help. Request yours with Attorney Joseph P. Doyle today!