Welcome to Extreme Investor Network, where we provide unique insights and tips to help you make the most of your personal finances. Today, we’re discussing the upcoming holiday season and how it can lead to significant credit card debt for many shoppers.
According to a recent holiday spending report by NerdWallet, 28% of shoppers who used credit cards have not paid off the presents they purchased for family and friends last year. With credit card debt already at $1.14 trillion and holiday spending expected to increase this year, it’s more important than ever to be mindful of your finances.
So how can you avoid overspending this holiday season? Setting a budget and tracking expenses is key, says certified public accountant Howard Dvorkin. Additionally, author Candy Valentino recommends reallocating funds from other areas, such as canceling subscriptions or negotiating utility costs, to make room for holiday spending without taking on new debt.
To save on what you spend, Valentino suggests starting your holiday shopping early to take advantage of deals and discounts. Pooling funds with family or friends can also help share the cost of gifts. Avoiding temptations like mall visits and unsubscribing from marketing emails can curb unnecessary spending.
Consider alternatives to traditional gift-giving, such as investments or charitable donations, to create a lasting impact. And don’t underestimate the value of homemade gifts like cookies, candles, or sugar scrubs.
At Extreme Investor Network, we empower you to make wise financial decisions and avoid unnecessary debt during the hectic holiday season. Remember, a little planning and discipline can go a long way in keeping your finances on track. Subscribe to our channel for more expert advice on personal finance.