SACRAMENTO, Calif. — With Thanksgiving in the rearview mirror, it’s full steam ahead on the holiday gift-giving season, but you don’t want to wake up to a financial disaster in the new year.
So, just like Santa, when it comes to holiday shopping, you should check your list twice because there could be some money-saving pitfalls.
Research shows consumer debt is at an all-time high of more than $17 trillion and much of it is due to credit card debt. The temptation to spend is stronger than ever this time of year.
Sacramento-based financial coach Maureen Paley suggests you pause and give yourself time to consider if it’s something you really want to spend money on before swiping your credit card at the store.
“Is it going to be a cash purchase? Is it going to be a credit card purchase? Depending on what your answer is they're going to have different repercussions going forward,” said Paley.
Be sure to pay your credit cards on time.
“If we don't pay that off on a credit card right away, the interest will make sure that that money grows and it's going to be far more expensive than we actually intended it to be,” she said.
To stay within your budget, Paley recommends making a list of things you want and need, how much you want to spend on it and sticking to it.
“You want to be cautious about how you do your spending as well and make sure you have those limits in place so you don't feel as much pain in the new year,” she said.
Online shopping can be convenient, but make sure you also think about how you’ll receive your packages. We’ve all heard about porch pirates and you might want to consider curbside pickup instead of delivery.
A lot of people are choosing ‘buy now, pay later’ options because it can help them afford the cost of something by not paying the full cost upfront. Experts say using that option boils down to if you’re comfortable adding another bill since payments are spaced out over time.
If you don’t pay the item off on time, you could suffer additional fees and those are not good for your budget.
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