How To Avoid Holiday Debt While Still Enjoying Christmas

The holiday season often means one thing: shopping. Many people burn holes through their credit in order to buy the newest, coolest, most wanted gifts for their family and loved ones. Unfortunately, just as the road to hell is paved with good intentions, the road to debt can be paved with Christmas gifts.

Debt can be a huge burden that weighs a person down. When the soft lights and joyful music is over, those Christmas memories are filled with credit card bills and outrageous interest rates that can leave anyone feeling like a Scrooge. Avoiding the holiday debt that can drag you down is critical. Not only for your financial health, but for your emotional health too. Drowning in holiday debt can lead to depression and anger, erasing the momentary joy your gifts might have brought.

Luckily, avoiding holiday debt can be very simple to do. And it does not mean giving up the Christmas joy either. You can still show your family how much you care for the holidays without destroying your credit rating in the process. Before you put a single gift in your shopping basket, read these simple tips to keeping the holiday debt at bay.

● Make a budget and stick to it. Sure, the newest phone or video game may be cool and exciting, but if it puts you over your budget you just have to pass. Create a list of everyone you plan to give gifts to and a reasonable amount of money to spend on those gifts. If you have a big family you may want to only spend $25 per person, or parents may want to choose only $20 for adults and $30 for children. Come up with a figure that will not cause you to go broke, and stick with it.

● Look for sales all year long. Almost everyone shops the Black Friday sales that many stores hold after Thanksgiving, yet there are sales going on all year long that can be equally great. There is nothing wrong with buying Christmas presents in April, June, or August if that is when you find the perfect gift on sale.

● Only use cash to buy gifts. Putting presents on credit, even if you have a great interest rate, can easily lead to getting in over your head. Stick with cash for your gift purchases to help keep you on budget and leave your credit rate alone. If you are doing your shopping online use a bank card that draws directly from your checking account rather than a credit card.

● Consider homemade gifts. Giving homemade gifts can be a very meaningful and frugal way to show how much you care during the holiday season. Homemade jams and jellies are simple to make, or try your hand at sewing, knitting, even jewelry making. Do not fret if your gift is less than perfect, often the small imperfections are what gives a piece personality.

● Offer yourself instead. Does your mother really need a new kitchen gadget, or would she rather have you come over for dinner more often? Does your son need a new toy, or would more time together be a better gift? If debt is already a problem, give your family a cost-free gift that they will surely love: you. Remember, the holidays are about family and togetherness. And both of those things do not cost a dime.