- 03
- Apr
Many consumers today use their credit cards for holiday shopping, with the intention of paying off the debt after the holiday season. However, most people rarely end up paying off their debts immediately after the holiday season, and end up stuck with the holiday bill which is often carried over into the next holiday season.
Choosing to use your credit card during the holiday season can turn into a bad decision. On the one hand credit cards are convenient and it is safer than carrying cash everywhere you go. However, if you get carried away with a credit card it can be disastrous, and end up putting you in debt. If you are sensible about what cards to use and when to use them, then you can make the best out of your credit cards.
If you are searching for a card especially for the holiday season, then you will want to consider applying for a credit card with a low interest rate, or an introductory 0% interest rate on purchases. If you already have an existing card, then you may want to consider doing a balance transfer to a 0% interest rate card after the holiday season to help you gain a head start on paying off those presents.
You will also want to take advantage of the holiday sales. Many stores start to make down the price on items weeks before the holiday season, so keep an eye out for deals on specific items or toys. Homemade gifts are a cheap and thoughtful gift to give to friends and family. There are a number of ways to save during the holiday season, an if you can avoid using your credit card, then do so.
If you are still struggling under the weight of credit card debts from holidays past, you may be wisest to consider transferring the debt to a personal loan. Loan interest starts as low as 5.7%, compared with a typical credit card APR of 15.5%.
