Surviving The Holidays Without More Credit Card Debt.
Just when we thought it could not get much worse, we find that the holidays are coming. We have already endured higher credit card interest rates, lower investment values, and a scary job situation. Now, with everything from holiday feasts to a gift list that must be satisfied, it is hard to see how we are going to make it through without increasing our debt or depleting our savings accounts.
We did find some good tips on cutting back on holiday spending though. If you cannot survive without using a credit card, consider transferring high interest balances with a 0% balance transfer if you can qualify. Of course, it would be better not to touch the plastic at all.
Some cheap alternative presents that still say you care:
- Make festive cookies and package them up nicely in tins, boxes, or gift bags. I would certainly not mind getting cookies for a present. If somebody is watching their cookie intake, as I should be, consider learning how to dry fruits as an alternative.
- Make a “mix in a jar” with computer generated instructions. I have seen plenty of ideas for pre-mixed cookies, cakes, etc. on the internet. You can put them in a nice container, stick a ribbon on, and have a thoughtful gift.
- If cooking is not your thing, put together a a “kit” for something from inexpensive items purchased at a discount or dollar store. You can put together a drawing set, simple took kit, or other creative set, and again, box it up nice and send it on.
- If you cannot afford the whole item, such as an electronics item, consider a gift card to the store where they can be purchased. A $150 IPOD may cost too much, but a $30 gift card is a start.
- Movie rental gift cards, packaged with some microwave popcorn and a couple of candy bars, make a “movie night” gift that men and women appeciate. You should be able to knock this one out for $10.
Stay organized, make a list, and try to make that list fit your budget. You should not have to suffer in January and February for your holiday spirit!
Holidays on a budget can be tough – but this article has some great ideas. I especially like the ‘movie rental nite’ package. Cool. If you are worried about your debt, the holiday time is as good as time as any to make it a regular practice to call your credit cards to ask for a lower rate. I have one client who owes over $20,000 on a Visa that was at 18%. He spoke with a ‘rate specialist’, touting his rising credit score and declining balance and got his rate cut in half, from 18% to 9%! His monthly interest charge was instantly reduced by $150, which will help him pay off his debt even sooner.
San Francisco Certified Financial Planner
November 14, 2008
That calling your credit card thing is classic advice, and it used to work very well. Nowadays, it doesn’t work as well as you’d think with some card companies. You get a customer service agent from another land who tells you that they have no other current offers.
And that’s from people who pay more than the minimum and have stable, if not rising, and decent credit scores.
Either the credit card companies are strapped, and do not want to encourage any more risk, or they just figure they can do whatever they want and people will be stuck with it in a tight credit environment.
frugalpigs
November 15, 2008