Want to avoid holiday credit card debt?do these moves now

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A little planning can create a lot of interest.

Key Point

• Many consumers regularly pile up credit card debt while on vacation.
• If you want to avoid that fate, now is the time to get organized and start saving.

It’s only October, and fall has just begun, so you might not be thinking about the long weekend. At the same time, we are only a few months away from the most wonderful and expensive time of the year.

Even if you promise to minimize your spending over the holidays, your credit card balance can be higher in November and December than most other months. And the last thing he wants to do is end up in a situation where he can’t roll that balance over to 2023 because he doesn’t have the means to pay it back.

If your goal is to avoid New Year’s Eve debt this year, there are steps you can take to make it happen. But you need to move quickly.

1. Evaluate your available holiday funds

You may have $200 in your savings account, but you don’t need it as an emergency fund. Or maybe there’s a $100 bonus his check from an employer that hasn’t been credited yet.

Knowing how much money you have available for vacation now is important, especially since you don’t have a lot of time to save for vacation. It should be the starting point for keeping your vacation plans realistic.

2. Calculate non-negotiable vacation costs

Maybe I’ll go home and visit my parents every Thanksgiving. And not being able to put up a tree for Christmas might break a child’s heart.

There are certain vacation expenses on your books that are non-negotiable, but that’s okay. But the key is to identify what they are and how much they cost. , which means that another $700 must be scraped together before vacation billing begins.

3. Increase your savings

Once you’re aware of the shortfalls you’re seeing for holiday spending purposes, you can take steps to save that money and avoid running out of credit card balances. One option is to drastically cut your spending for a few months. Will it be difficult? probably. However, it is for a limited time only, so be careful.

Another great way to save extra holiday cash is to have a side job in addition to your main job. From now on, if he can make an extra $100 a week by late December, he might be able to wrap up his vacation debt-free. And who knows? I like to keep my side hustle even after the holidays are over, so maybe I’ll have more savings for next year’s festival.

Carrying New Year’s Eve debt can make you feel stressed and frustrated as you prepare for the new year. And it’s not what you want. Do your best to avoid holiday debt instead of taking that risk.