Holiday Shopping Tips
How to shop smart for the holidays to avoid a holiday debt hangover.
A holiday debt hangover is what you experience after you overcharge during the holiday shopping season. People often make the decision to ignore the bills and keep charging during the holidays to make the season special, with the thought that you’ll deal with the debt once the holidays are over. The hangover is the sinking feeling and vertigo you get once you realize the bills are so high.
Additional resources to help you save during the holidays:
The following resources can also help you cut costs and save money during holiday shopping:
- Holiday Survival Guide
A comprehensive guide to avoiding credit card debt during the holidays.
- Holiday Spending Checklist
Accurately assess what you need to buy and how much you can expect to spend
- Holiday Spending Planner
Build an accurate holiday budget then tracking actual vs. expected spending
- Holiday Meal Planning
We offer 10 tips on how to plan a holiday feast that won’t break the bank
Why two credit cards MAX is right for the holidays
As we explained at the end of the video, Penny Wise shoppers either avoid credit entirely for the holidays so they don’t encounter any post-holiday problems with debt or they plan on use two credit cards, at most, for holiday spending.
- A rewards credit card you can pay off in-full. If you have a credit card that will earn rewards like cash back on holiday purchases, then you may choose to use this card strategically to earn those rewards. However, the balance should be paid in full at the end of every billing cycle or those rewards will be quickly offset by interest charges.
- A low APR credit card that you use for larger purchases. If you have a purchase that you know can’t be paid off in a single billing cycle, then you should put these purchases on a credit card with the lowest APR possible. This allows you to minimize total interest charges as you pay off the debt.