8 tricks to not rack up card debt during the holidays
By Sally Herigstad
To Her Credit
Sally Herigstad is a certified public accountant and the author of "Help! I Can't Pay My Bills: Surviving a Financial Crisis" (St. Martin's Press, 2006).
Dear To Her Credit,
I've been trying hard this year to work down my credit card
debt, and I'm proud of the progress I've made. If I keep this up, I'll be debt
free by next summer.
I'm worried about the holidays coming up, though. Every
year, my list of people to buy for gets longer. If we exchange gifts one year,
we have to the next -- and it can never be something noticeably cheaper than
last year's gift. I even buy gifts just to stash in the closet, just so I have
something to pull out when people drop by with surprise presents.
How can I keep from maxing out my credit cards this year
without feeling like a Scrooge? -- Tiana
Dear Tiana,
Oh, the ever-expanding Christmas gift list! I know how that
goes -- a fun little gift one year given with the best of intentions leads to
decades of gift exchanging that turns into anything but fun. It's madness.
I got the most delightful e-mail from a friend this year.
She said, "Let's not exchange gifts this year." She noted that our
kids are older (at ages 28 and 30, they won't cry if I don't send a toy), and
we both have new daughters-in-law to shop for.
So we've called a truce. I won't send to her and her kids,
and she won't send to mine.
The gift list isn't the only thing that expands year after
year, however. Christmas card lists get longer and longer. Once you're in a
card database, you'll probably get their cheery missive from now until you die --
or after. (I've been guilty of addressing a card to the long-deceased before. Fortunately
my husband caught it before it was mailed.)
Here are some ways you can enjoy the season without racking
up a lot of credit card debt:
Try my friend's tactic of calling a truce. If that's too
formal, casually mention to friends that you're cutting back this year so
nobody has to feel guilty about not buying so much.
Watch out for personal spending. Malls are dangerous,
especially with all those sales going on. Am I the only person who comes home from
"Christmas shopping" with things I happened to find for me?
Shop online. It's easier to compare prices, and you'll be
less tempted by store displays of things you don't need. And the shipping will
probably be offset by the gas you don't use.
Scale back the card list and save on printing and postage.
Do you even know everyone on your list? It's OK to delete a few names every
year. If you have more than 50 or 60 addresses on your list, you can probably
cut back.
Make a few homemade gifts. Food is always a hit, and you don't
have to worry about it gathering dust!
Shop locally. Get to know your local craftspeople. They
probably have online sites, too. It's nice to give something your relatives
across the country can't buy at their chain store.
Get the most from your holiday lights and decorations. More
isn't better. Stringing a few lights won't make a noticeable difference on your
electric bill, but lights you can see from space will. Estimate your holiday lighting
bill with this Energy Cost Calculator.
Celebrate locally. The community production of "The
Nutcracker" is not only cheaper, but it's more personal and you can
actually see the actors. The parking will probably be free, and you might even
know someone in the cast.
I'll still get plenty of shopping in for the most important
people on my list. I actually enjoy gift shopping, which I think is done best
with a friend and plenty of latte stops. It's the most fun before the crowds
get too big or panic sets in, while you can still take time to admire the
decorations and critique the Christmas music together.
Enjoy your friends and family this season -- preferably in
front of a fire with a cup of homemade hot chocolate. Sometimes agreeing not to
give so many gifts is the best gift of all.
Sally Herigstad writes about women and credit every week for CreditCards.com. Herigstad is a writer and finance consultant for MSN Money, a personal finance software product. She is also a member of the Washington Society of Certified Public Accountants and the American Institute of Certified Public Accountants. Her Web site is http://helpicantpaymybills.net. Sally Herigstad lives in Kent, Wash., with her husband Gary. They have two grown children, Valia and Grant.
To Her Credit answers a question about a debt or credit issue from a CreditCards.com reader each week.
Send your question to Sally.
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