A good holiday is all you need after you work hard for the entire year. But Christmas debt is for real. Every year you feel pressured to spend on vacations, food, and gifts that are not always under your means. By reading this post, you can learn 6 proven ways to reduce and manage your holiday expenses in a better way.
6 Tips to Lower Your Christmas Debt
Use these 6 proven and practical tips if you don’t want to end up with an empty pocket by the time the holidays are over.
1. Leverage Intro Offers on Loans & Credit Cards
After the holiday season, if you wake up to a massive credit card statement, you must arrange credit at lesser interest rates. It’s possible through intro offers launched in the festive season by various credit card and loan providers.
These intro offers to allow you to get low-interest personal loans and credit cards easily. You can even get a no-interest credit if you are lucky. So explore all your options to reduce your interest and pay off your debt as early as possible.
2. Take a Low-Interest Personal Loan
The interest rate on some personal loans can be lower than your credit card sitting in your wallet. Search for such low-interest personal loans to pay off your credit card bill on time. You can get various such options online and through credit apps. And you may not necessarily wait for some intro offers only.
These online banks and apps may launch particular low-interest personal loans exclusively to help people manage Christmas debt during the holiday season. But remember to maintain a good credit score all year round to get a low-interest loan.
3. Take Advantage of Credit Card Rewards
When buying stuff for yourself or a gift for a loved one, always check for lucrative reward points from credit card companies. They also have a tie-up with online portals for discounts and cash backs. It saves you good money, especially if you buy multiple gifts.
In fact, you must research which company is generous in providing maximum credit card rewards and discount schemes before getting a card. Point redemption, gift cards, and cash backs save you significant expenses during the holiday season.
4. Shop for Gifts From a Drugstore
This tip might surprise you if you never paid head to some of the unique and cheap items available at the drugstore. You can get scarves, denim leggings, and make-up kits to stockings. You can check out your neighbouring drug store for such pocket-friendly options.
Even if you need to search a bit to find the right store, it’s all worth it. This is because a small drugstore with ready options saves you the exhaustion of checking out a vast mall to find a suitable and cheap gift.
5. Avail Debt Reduction Via Switching Credits
You can likely get some balance transfer credit cards in the first quarter of next year. You can also avail 0% APR introduction offer if you find the right credit provider early. That way, you can save on interest for at least a period.
Look out for debt consolidation loans if no good credit transfer cards are available. These loans allow you to consolidate your multiple high-interest loans into a single low-interest personal loan.
6. Use Innovative Ways to Save on Gifts
The exchange of gifts is one of the primary aspects of the celebration. Hence it is often the most significant reason behind the piling up of holiday or Christmas debt. This year be a little innovative. Think about how to offer a lovely gift to friends and family on a low budget.
For instance, you can make a handmade gift, celebrate after the main holidays to get cheap gifts or host a white elephant party.
These 6 tips are great for managing your holiday expense and lowering your Christmas debt. But you also need to consider savings. The more you save from the current year, the less credit you need for next year’s holidays. Also, think twice before splurging. You can get carried away in the festive spirit and spend on unnecessary and out-of-budget stuff.
