From CBS News · · 3m
How to avoid holiday debt this season
A financial planner shares strategies to keep your holiday spending under control and avoid starting the new year in debt.
In brief
A financial planner shares strategies to keep your holiday spending under control and avoid starting the new year in debt. Financial planner Jill Schlesinger offers tips for managing holiday spending to prevent taking on debt during the shopping season. Originally reported by CBS News.
The holiday debt problem
Many people overspend during the holiday season and start the new year carrying debt from their shopping. Financial planner Jill Schlesinger offers guidance on avoiding this trap.
Who is Jill Schlesinger
Jill Schlesinger is a business analyst and certified financial planner who specializes in helping people manage their money through major spending periods.
Set a spending budget
Before you start shopping, decide how much you can afford to spend on gifts and holiday expenses. Write down your total budget and stick to it throughout the season.
Make a gift list
Create a list of everyone you plan to buy gifts for and assign a specific amount to each person. This prevents impulse purchases and keeps you accountable to your overall budget.
Avoid credit card traps
Using credit cards for holiday shopping can lead to high interest charges if you cannot pay off the balance quickly. Consider using cash or debit instead to limit overspending.
Track your spending
Keep receipts and monitor how much you have spent as you shop. Checking your progress against your budget helps you stay on track and avoid going over.
Look for deals and discounts
Take advantage of sales, coupons and promotional offers to stretch your holiday budget further. Shopping strategically can help you buy more gifts without exceeding your spending limit.
Consider alternative gifts
Homemade gifts, experiences or charitable donations in someone's name can be meaningful without breaking your budget. These alternatives often mean more than expensive store-bought items.
Plan for other holiday costs
Remember to budget for decorations, food, travel and entertainment in addition to gifts. These expenses add up quickly and should be included in your total holiday spending plan.
Start saving now
If the holiday season is approaching, begin setting aside money immediately to cover your planned expenses. Even small amounts saved now can reduce the amount you need to borrow.
Pay off debt quickly
If you do use credit for holiday purchases, make a plan to pay off the balance as soon as possible after the season ends. Interest charges will only make your debt larger.
Plan ahead for next year
Use this holiday season to learn what you actually spent and what you can afford next year. Planning ahead gives you time to save gradually and avoid last-minute financial stress.
What matters most
Financial planner Jill Schlesinger offers tips for managing holiday spending to prevent taking on debt during the shopping season.
