Avoid Christmas Debt

It’s exceptionally hard to avoid taking on additional debt during the Christmas season. Maybe it’s unrealistic expectations about gift-giving; or maybe it’s just poor budgeting. Whatever the case, here are few tips for enjoying Christmas — and leaving the debt behind.

Trade Names

If you have two or more people in your family, consider swapping names and buying gifts for just one person.

For instance, if there were four people in a family, each person would buy just one gift: four total.

If, on the other hand, each person bought gifts for the other three family members, 12 gifts would be purchased. (4 family members x 3 gifts apiece = 12 gifts) So by drawing names, it’s possible to reduce your gift-spending by 200%.

Make Your Gifts Yourself

Do you have a talent for crafts? Make your gifts instead of buying them!

My wife is good at making jewelry, ornaments, and hair bows. She’s used her skill to save money during the holidays.

Don’t Give Gifts

There is so much abundance and wealth in the U.S., we hardly “need” anything. So is it really necessary to go nuts and spend a small fortune on gifts?

Consider putting a moratorium on Christmas gift-giving for one year. Focus on spending time with people you care about.

Create a Gift List

If you choose to buy gifts, then write a list of gifts you plan to buy before you go shopping. Know in advance how much money you have to spend.

Just “shopping around” is a recipe for disaster. You will likely buy things on impulse and spend more than you planned. But if you create a plan and follow it, your bank account will thank you.

Don’t Use Credit

Only use cash or a debit card when you buy gifts. Do not use credit cards. Since you’re spending more money than usual in a short period of time, it’s too easy to overspend.

What’s more, by leaving your credit cards at home, you won’t get any unpleasant surprises when the December bill shows up in your mailbox in January.