During the Christmas season it’s so easy to join the bandwagon of spending a lot as people rush to finish their gift shopping. Yes, it is the season to be jolly and generous. After all, being generous once a year can’t possibly be that bad. Or can it?
The News Courier reported that the average American was estimated to spend at least $1,000 on Christmas last December 2017 according to a research firm. Additionally, most Americans will put this particular expense on at least one credit card.
A lot of credit counselors believe that too many Americans get into trouble with their credit card debt during the Christmas season or when they take vacations. They tend to spend money they do not have and so when emergencies take place in the home, it’s too late to realize that they have so much to spend and have not put aside money for more important expenses.
The article further adds that Millennials are potentially the ones who will be badly hit by credit card debt because of their attitude of wanting things outright. A lot of young people in today’s generation do not fully comprehend the responsibility that goes with owning and using a credit card. They use their credit cards to purchase things that they don’t really need when their incomes are not enough to pay for their lifestyle.
Reality is, trouble begins when it’s time to make payments. Only then will a lot of young people realize the burden of using a credit card indiscriminately. The expense has already been made and payments have to be given.
Situations like this call for credit counseling help. Companies such as Credit Advisors Council have experts standing by to help you If you find yourself stuck in this type of rut – barely having enough left after paying off credit card bills – then you need to make significant changes in the way you handle your money. For one, you need to realize that if you cannot pay for something in cash, it simply means you cannot afford it.
Ideally, if you want to splurge on gifts for loved ones during the Christmas season, you should start saving for it form the start of the year. Putting aside a certain amount each month for expenses that you foresee in the future is a good exercise that will train you to build healthy financial habits.
The same principle applies when you intend to go on vacation. Months before your scheduled trip you need to be able to put aside money for specific expenses. Don’t rely on your credit card alone. Plan out your vacation by listing down the expenses you are expecting.
So, how do you get out of debt? The answer is pretty simple. You need to pay it off month after month until it’s all gone. In the meantime, you need to be able to control yourself and avoid making unnecessary expenses so that your credit card debt does not pile up.
The next time around when you think about Christmas shopping, be sure to prepare for it way ahead of time. You think you may be joyful for a couple of days due to the purchases you’ve made, but you will carry the consequences for a longer period of time.
Living in debt is a sign that you may have problems in managing your finances effectively. Being in debt due to the fact that you overused your credit card on unessential things is another story.Read More