How to prevent credit card abuses and debt during the holidays.
Holidays are typically it a period where people tend to do a lot of shopping and spend a lot of money. Because the need on the financial resources increases over the holiday period people tempted to use their credit card more than you regularly do. Extra heavy use and sure of the credit card may result in certain actions and activities that may prove to be more damaging in the wrong ones. Here are some common things that you should avoid doing with your credit card during the holiday season.
· Maxing out your credit card. Approaching the credit limit on your credit card or maxing it out pursue of the risk of going over the credit card limit and incurring extra charges and free. Going over the credit card limit may also result in your overall credit card interest rate to be increased by the credit card provider. Maxing out your credit card will also result in a high utilization ratio which can be damaging to your credit score..
· Relying on credit to buy what you cannot afford. Just because you have money available on your credit card is a pain that you should use it to make the expenditure that you cannot otherwise afford. It is easy to get carried away with the shopping rush and the holiday spirit and buy more gifts than you can actually afford. You may find yourself under a credit card debt that may take months you to repay during which time you will also incur a lot of interest charges which will result in you paying up a lot more than what your initial purchases ought to have cost you.
· Shopping without a budget. If you do intend to go shopping and use your credit card for it try and plan your holiday expenditure so that you stay within budget. Try and do your best to stick with an the budget. Make the holiday spending budget before and thinking of how much you can actually afford to spend.
· Keep a track on your credit card balance. Spending during the holiday season can result in you losing track of how much you why she spend. Try and keep a record of the balance on your credit card so that you do not cross the limit at an appointed time.
· Signing up for department will store credit card offers. The holiday season is the one time when the departments market their store credit cards particularly aggressively. You may be offered discounts and offers are signing up for their departmental credit cards. Do not sign up for departmental credit cards just because you can avail a certain amount of discount on your current purchase. Every time that you make a credit card application it affects your credit score. If you do not need the card resist the temptation to apply for new accounts just to purchase more gifts.
· Giving your credit card to some areas are shopping. Every time that you give your credit card some years to do their shopping you lose control how much money is actually going to be spent. Be very careful before giving your credit card spending real is for shopping and as it may result in putting you under a credit card debt specially if you do not get the money from the person you land the credit card to immediately.
· Be extra careful with your credit card. Be extra concerned with the security of your credit card during the holiday season is getting it stolen may result end immediate and fraudulent charges being made to your credit card. People are more liable to used their credit cards in a busy and rushed in one month of credit card shopping.
· Do not use the credit cards that holiday have a balance. In case you have an already existing balance and debt on a credit card from a previous high expenditure that you need to pay back then to not use this credit card to make more expense. Raising the credit card balance will create more difficulty in being able to pay back the debt. The larger the credit card balance, the longer it might take you to date back which will result in you having to pay a lot of money in extra interest charges.
· Do not substitute credit card for cash. Credit cards are meant to the convenience of using without having to carry too much cash on with you during the holiday season. If you do not have the money to pay the credit card balance completely or reasonably quickly to not use the credit card substitute for cash.