How To Plan To Avoid Post-festive Debt?

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Post-festive Debt

Who doesn’t enjoy the winter break? There’s nothing better than going home, visiting family and friends, and eating home-cooked meals. With the pandemic and economic downturn, giving gifts and celebrating the holiday season may be difficult. However, with careful planning and budgeting, it’s possible to celebrate the holidays without blowing your entire budget or maxing out your credit cards.

Here are some ways on how you can avoid post-festive debt.

Budgeting for gifts

You may spend a lot of money on gifts during the holidays. Keeping track of how much you spend each month is vital for staying within your budget. Make a list of innovative yet affordable gift ideas for your friends and family. Create a shopping budget and stick to it no matter what. Read CreditNinja’s tips on saving for Christmas to create an effective shopping budget.

Maximizing on special events

Nowadays, there are all sorts of discount sales like Cyber Monday, Black Friday, etc. These events offer huge discounts, so you should shop during such sales and save some money. 

Using coupon codes

You can find great deals on gifts for your loved ones without relying solely on sales. Make sure you check your favorite online stores’ coupon codes before you shop. It’s an excellent way of saving money. You can also find some coupons in your mailbox, so go through all your emails. Many influencers also give discount codes that can help you save some bucks.

Avoid credit cards

It’s better to use cash instead of a credit card for holiday expenses. If you carry a balance on your credit card, the interest rate will typically be high. It’s wise not to spend your holiday budget on items you can’t afford. Instead of burying yourself in debt and worrying afterward, using cash for gift shopping will make you stress-free.

Compare different stores

Regardless of how you shop, online or at a physical store, you can always find the best deal. When buying online, compare prices on different websites and see where you can save money. You can also check for the price matching policy of each store. These sellers will not only match but also surpass those of their competitors. 

Be more thoughtful

A small, meaningful gift holds the same value as an expensive gift. Spend a moment thinking about what your family or friends need instead of recklessly wasting money on useless, costly gifts. Another option is to give a handmade gift; it adds more meaning to it.

A new trend of cashback is quite rewarding. There are websites and apps which are offering great deals on several brands and products.

Loyalty points

This holiday season, keep in mind the points you have, which are often overlooked, in your efforts to reduce your debt. Look into how you can redeem the points from your existing loyalty programs or credit cards for discounts or gift cards.

Bottom line

Your debt shouldn’t steal the holiday fun from you. Consider the sentiment behind your gift purchases rather than the dollar value and avoid perpetual debt. Thought and emotions matter more than monetary values.