4 Holiday Shopping Mistakes to Avoid This Year: How to Protect Your Bottom Line & Your Credit

November 30, 2015

Colorado Springs Bankruptcy attorney 4 Holiday Shopping Mistakes to Avoid This Year: How to Protect Your Bottom Line & Your Credit

Holiday Shopping Mistakes to Avoid This Year

The holidays are here, and for millions of Americans, that means busting out the credit cards and buying gifts for all of their loved ones. While this generous spirit is admirable, it can get some people into financial trouble, especially if they have been struggling with debt in the months leading up to the Christmas season.

To help you avoid starting out 2016 in serious financial trouble, below are some holiday shopping mistakes and tips to keep in mind as you get ready to buy presents this year.

Tips for Not Breaking the Bank this Christmas

  1. Make a gift list and budget – One of the easiest ways for spending to get out of control, especially over the holidays, is to not have a clear concept of who you are making purchases for and how much you have to spend for each individual/gift. So, figure out your overall holiday gift budget and then parse that out according to your gift list. Setting up individual gift budgets for everyone on your list may be little tedious, but it can pay off in a big way when you see you holiday bills later (as you won’t find any bad surprises or shocking totals).
  2. Avoid taking out new retailer credit cards – It can be tempting to take out a retailer credit card, especially when you are making bigger purchases at a store, but don’t do this if you are serious about protecting your credit and debt may be an issue for you. A few reasons that this is a bad idea include that retailer credit cards usually have really high interest rates and opening up a new line of credit can lead to more debt/more difficulties managing debt.
  3. Be weary of “no interest for x years” deals – Another pitfall of the shopping season can be deals that offer no interest for some amount of time. These “deals” can end up dinging your credit (due to the types of loans these are); worse yet, if you are not able to pay off the loan before the interest sets in, you could be facing astronomical interest rates, potentially causing your debt to snowball out of control.
  4. Review your credit report after significant spending – The holiday season brings tons of shoppers online, as well as out and about. And where there are shoppers, there also tends to be identify thieves waiting to steal their personal information and money. So be sure to review your credit report after some major spending. If you notice charges or debts on your credit report that you did not acquire, do some deeper digging to find out if your identity may have been stolen.

Contact a Colorado Springs Bankruptcy Lawyer at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact a trusted Colorado Springs bankruptcy lawyer at the Law Office of Jon B. Clarke, P.C.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

Categories: Debt, Financial Tips