Some people feel as though “the holidays” and “debt”
are inextricably bound, and indeed for many, sometimes they can go hand
in hand. However, with a little careful planning and some smart spending
habits, you can absolutely enjoy a fun and festive holiday without the
hit to your wallet.
Budgeting tips to help you avoid taking on new debt:
- Keep your past holiday spending activities in mind. Think back to how you spent money during past holidays. What did you
spend the most money on? Were you prone to making impulse or last-minute
purchases? Did you find that you had many unexpected expenses that were
not planned for in your budget? Consider these questions when creating
your budget for this year; you may find that being more aware of your
spending habits is half the battle.
- Calculate your budget based on discretionary income. A healthy budget should be limited only to the income you have left over
after all of your other expenses, such as rent/mortgage payments, bills,
food, etc., have been paid. This can help with the next tip, which has
to do with managing your credit.
- Avoid relying on credit cards. Credit card debt can easily get out of control when it comes to an abundance
of holiday expenses. Although it can be tempting to charge purchases after
spending all of your cash, try to limit your budget to your discretionary
income only to avoid racking up new debt. If you must use credit, have
a realistic plan in place to have the balance paid off before the end
of the next billing cycle to avoid interest payments.
- Be a smart shopper. Comparison shopping online is a great way to ensure that you are getting
the best prices possible for the items on your holiday shopping list.
Taking advantage of Black Friday and Cyber Monday deals is a great way
to save, but have a plan in place for exactly what you want to purchase
to avoid overspending.
The holidays don’t have to be synonymous with debt! We hope that
by implementing these tips, you can enjoy all the holidays have to offer
while skipping the substantial price tag.
Trouble with Debt? We Can Help!
Allmand Law Firm, PLLC has served the needs of clients throughout Dallas,
Fort Worth, and the mid-cities for more than a decade. If you are struggling
with unmanageable debt and are searching for a solution, we encourage
you to speak with a member of our team to begin discussing your options. Whether
bankruptcy is the most beneficial choice for your situation or another approach,
we can help you determine which approach is best suited to your individual
needs. Rest assured that when you bring your case to our firm, your case
will be in good hands.
It is our goal to help you regain the peace of mind that comes with financial
freedom. To learn more about how we may be able to help, please click
here to request your
FREE financial empowerment session.