December 5,2006
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Spend Plastic Wisely During Holidays
Make no mistake; the holidays are a financial burden on almost everyone. Unless you have more money than Oprah (or are a thrifty Scrooge), you are bound to feel the pinch between your seasonal generosity and what your budget can afford. The deal-packed ads in your newspaper beckon you to shop, and the festive decorations and blaring carols at the mall lull you into a sort of consumer zombie haze, as if subliminally telling you to "spend, spend, spend." It's easy to abuse your credit cards, especially if you don't have much cash on hand.
But stop right there, Santa Claus. Come January 1, all you'll be left with is an eggnog hangover, and sky-high card balances that may take you far more than a year to pay down. Spending more than you can afford is never OK, even in light of giving to others. There are some things you can do to make sure that you don't end up sinking in credit card debt during the holidays.
For one, make a list of what you want to buy, and a separate list of what you have bought already. Having a tangible reminder of your spending (receipts just don't seem to cut it) will keep you more in line than just spending freestyle and assessing the damages later.
Unrelated to presents, curb your non-gift spending by, say, not eating out on Christmas or New Year's Eve. Restaurants tend to jack up their prices for "special" holiday dinners that will be a distant gastronomic memory by the time that the statement hits the mail. Consider a potluck with your family and friends. It's fun to eat out, but don't consider it a necessity.
One way not to curb your spending is to carry a set wad of cash with you to buy presents. Muggers and thieves view the holidays as open season, and carrying a pile of bills with you is a good way to get yourself in trouble. Credit and debit cards are safer, in that they don't open you up to personal danger during a time of year when criminals and apt to take advantage of happy shoppers. So use your credit cards – but use them wisely.