If there’s ever a time that puts you at risk for going into debt, it’s the holidays. During the holidays, our spending can get out of control, and many people rely on their credit cards to get them through this busy and expensive time of the year. Unfortunately, many people find it difficult to pay off debt accumulated over the holidays, putting them at risk for poor credit, bankruptcy, and debt collection lawsuits. To help you get through the holiday season without breaking the bank, below are some tips for avoiding holiday debt.
Create a budget and stick with it
The first thing you should do this holiday season to avoid debt is to create a budget. However, simply creating a budget isn’t enough. You must stick with it! To create a holiday budget, examine your income, expenses, and savings to determine much money you can put towards holiday gifts this year. Next, make a list of the gifts you want to buy. If you determine that you don’t have enough money in your budget to cover everything on your list, either cut back on some expenses, pick up a side job to cover the extra money, or simply buy less expensive gifts.
Be careful with credit cards
Credit card debt can spin out of control during the holidays if you let it. Therefore, you should be very careful when using credit during the holidays. You should avoid using credit completely if possible. If you create a budget and stick to it, you should be able to make it through the holidays without accumulating any debt.
Don’t buy things for yourself
People often buy a gift or two for themselves during the holidays. However, foregoing gifts for yourself until after the holiday season can give you a little wiggle room in your budget and help you avoid having to rely on credit cards to make your purchases.
Hold on to your receipts
Holding on to receipts is always a good idea. In addition to making returns, there are sound financial reasons to hold on to your receipts during the holidays. For example, if you purchase a high-priced item that goes on sale after the holidays, the store will sometimes refund the difference to you if you provide the receipt.
Don’t be too generous
Finally, generosity is a wonderful thing, and people love to get into the spirit of the holidays by giving freely to their friends and family. However, don’t let your generosity put you in a bad spot financially. Although it’s kind of a cliché, it really is the thought that counts when it comes to gift-giving.
Contact a California debt collection lawsuit defense attorney
If you’re facing a debt collection lawsuit, you should contact a debt collection lawsuit defense attorney as soon as possible. At the Fullman Firm, our debt collection defense attorneys have over 40 years of combined debt collection lawsuit defense experience. When you choose us to assist you with your debt collection case, we will work with you to develop the most effective legal strategy possible. Please contact us today to schedule a consultation.