Over the holiday season, a lot of Americans wrack up significant debt. If you are bouncing back after bankruptcy, debt can be a dangerous prospect.
U.S. News claims that there are ways to avoid debt throughout the holidays.
Create a budget
To avoid future debt, you need a plan in place. Before the holiday shopping season approaches, write down how much you plan to spend on gifts. Review all your bank statements and any credit cards that you have open. Your budget should be realistic and if you plan to use a credit card, you should have a plan to make payments as soon as possible. You do not want to have a credit card gain interest for years to come.
Track your spending
With a budget in place, you can track your spending throughout the season. Write down every expense that you pay for. If you find yourself overspending, then you need to cut back on those expenses and stay within budget. While you may focus mostly on gifts, you should also focus on other areas. For instance, track your travel and entertainment expenses during the holidays.
Plan your gifts
The longer you plan your gifts, the more likely you are to see little debt at the end of the season. When you shop early, you can stagger the shopping between paychecks. If you have a plan in place, you may not spend extra money on items that you did not include on the list. While planning your gifts, do not try to give everyone a gift that costs the same.
