The Christmas season is a time of year when impulse spending is at its worst. It’s way too easy to impulsively add something to your basket or your online order, and it’s one of the easiest ways to increase your debt obligation. For many consumers, saving during the holidays is unheard of, but there are ways you can minimize the amount of money you spend and the amount of additional debt you take on. Here are 10 of them:
1. Get a prepaid credit card – Afraid your husband might go a little crazy with the credit cards buying you things for Christmas? Maybe your wife has no control when it comes to baby’s first Christmas? A prepaid credit card is the perfect solution. It will curb overspending, and they’ll be no worries about late fees.
2. Know your credit limit – Confirm your limit before you hit the stores, and avoid accidental over-limit spending which can wind up making your APR go significantly higher that it currently is.
3. Cash in on those reward points – Using rewards points is a great way to keep your money in your pocket and still make purchases.
4. Dig out the greenbacks – Although paying with cash isn’t a sign of the times, it’s a perfect way to keep your spending in check this Christmas season.
As the name may indicate, prepaid credit cards are, well…prepaid. They’re fast becoming popular with consumers, and for good reason. Prepaid credit cards are actually a safe bet with regard to keeping debt under control. There are, however, some things you should know about before getting one. Here’s how it works.
A prepaid credit card is very much like a gift card; minus the fees, of course. You load the card with your own money. It’s sort of like putting down a security deposit on the card. Then, you make purchases with the prepaid credit card, and the money comes out of the security deposit (The preloaded money). Once you’ve used up the security deposit, the card is no longer usable. Hence, you can’t accidently put yourself into more debt.
The Advantages
• It’s a secure way to spend without taking on further financial obligations.
• You can have your payroll check loaded right onto the card if you so choose.
• Using the prepaid credit card eliminates the need to walk around with cash in your pocket.
• Because the card is already paid off (per say) there are no later fees to contend with.
• There are no credit checks to obtain one.
• It really doesn’t matter whether you have a job or not because the card is already paid off when you get it.
