Avoid Using Credit Card for Holiday Shopping

The holiday season is probably the time when people tend to charge their credit cards the most. If using existing credit cards is not enough then it is also the time when most sign up for the maximum amount of departmental store debit cards. Here are a couple of reasons that you should think about before using your credit card for holiday shopping.

Reasons not to use credit cards for holiday shopping

Risk of building up too much post holiday debt

· You will build up a balance on your credit card which will cost you interest. You will end up paying more to the credit card companies. In case you have existing balances on your credit card this may mean that the amount of debt on your credit card becomes unbearably large and it takes you months or years to pay off what you charge during the holiday season.

Risk of spending more than you can afford

· You may end up spending more where credit card than you would with cash. Because with a credit card you are only limited by the credit limit available and you do not have to pay anything at the moment that you’re shopping you actually spend more than if you carry a specific amount of cash for your holiday shopping.

Inflated cost of gifts because of card interest payment

· You’ll end up paying more than the cost of the gifts if you carry forward the balance from one month to another. By the time you have finished paying off the balance which might take months or even the rest of the year you will have paid many top dollars more as interest to the credit card company.

Higher chances of credit card theft

· There is a higher risk of credit card fraud with credit card thieves taking advantage of increased holiday activity and using it as an opportunity to snatch credit cards and credit card numbers. Leaving your credit cards at home reduces the risk of using your credit card if someone snatches your purse or wallet.

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