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Tips to Avoid Taking on New Debt During the Holidays

How to Avoid Holiday Debt

During the holiday season, the pressures of spending money can be overwhelming — especially if you are struggling to make ends meet already. From buying gifts to hosting holiday gatherings, you can quickly end up with a bank account that is lacking funds. Now that the holiday season is in full swing, here are some steps you can take to ensure you don’t overextend yourself.

Budgeting Tips to Keep You On Track

With the temptation of bargains and sales during the holiday season, you could find yourself making unnecessary purchases that can put you in the red. Here are some budgeting tactics to keep yourself from going over your holiday budget:

Make Your List and Check it Twice

Before you create your budget, make a list of all the people that you are planning to buy gifts for. Try sticking to immediate family members, such as your significant other, children, parents, and siblings. A “Secret Santa” gift exchange is another way of keeping holiday purchases under control.

Create a Spending Limit

Create a spending limit based on how much you have left after all your expenses are paid. Then when you figure out how much you have remaining for gifts, assign a dollar amount to each person on your list, and stick to it.

Plan “Potluck” Parties

If you enjoy hosting holiday parties but don’t have the funds to foot the entire bill, create a “potluck” party in which every guest brings their favorite dish to share.

Forgo Using Your Credit Cards

Making holiday purchases with your credit cards is one of the easiest ways your spending could get out of control. Whether you have a high or low-interest rate, that “bargain” you purchased may not end up being such a good deal when you get your bill with interest added to it. When shopping in retail stores, leave your credit cards at home. If you must make an online purchase, use your debit card instead. Just be sure to only make purchases on secure websites so that your information is protected.

What to Do If Holiday Debt Gets Out of Control

If you have an overwhelming amount of holiday debt and do not have the means to pay it off right away or get it under control within a few months, bankruptcy could be a way to get you back to financial health. From saving your home from foreclosure to relieving credit card debt, having an experienced bankruptcy attorney on your side can help you navigate the murky waters of bankruptcy laws.

Contact a Southern California Bankruptcy Lawyer

It’s no secret that the holiday season is a stressful time of year and can bring on many financial burdens. If you are worried about getting out of debt, we can help ease your fears. Contact  Wadhwani & Shanfeld at (800) 996-9932 for a free consultation to learn if bankruptcy is the right debt solution for you.

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