How to Keep Holiday Spending Under Control

More Americans fall into the debt pit during the holidays than at any other time of the year. Crowded malls, highly-advertised merchandise discounts, bright lights, blaring holiday music, pretty decorations – retailers pull out all the bells and whistles to entice us to buy, buy, buy during the holidays. It’s easy to get sucked into the holiday hysteria and spend more than you budgeted. Credit cards and debit cards make it even easier to overspend.
Keeping holiday spending under control can prevent you from going into unnecessary debt or falling deeper into the debt pit if you’re already struggling to pay off credit card balances. To keep from falling into debt over the holidays, debt relief professionals offer these tips for reigning in holiday spending:
■Don’t let the holidays tank your credit score. As an incentive to stick to your budget, remind yourself of the financial perils of overspending. Going over your credit limit or charging unusually high amounts to a single card could have a negative impact on your credit score. Credit card balances should not exceed 30% of your available credit limit. Credit bureau TransUnion suggests sticking a Post-It note to the back of each credit/debit card noting your current account balance, available credit limit and the amount you can afford to spend as a reminder to help you keep holiday spending under control.
■Don’t fall into the Red Tuesday trap. A term coined by the Association of Independent Consumer Credit Counseling Agencies, Red Tuesday refers to the beating your bank balance takes after Black Friday and Cyber Monday that can shove your personal finances out of the black and into the red. Debt relief counselors warn that Red Tuesdays can occur anytime during holiday shopping and recommend taking a good look at your bank and credit card balances before you head for the mall.