The holidays have long been associated with increased spending – and increase debt. It has become an American tradition at this point to spend outrageous amounts of money to make sure everyone gets a nice Christmas gift (or gifts). Credit card debt runs rampant at this time of the year more than any other, leaving the personal finances of many families in shambles. Some many wonder if there is a better way to make responsible use of revolving personal finance options – such as a revolving line of credit.
Making A Different Choice
Everyone can identify with that Christmas shopping rush, where you are flying from one store to another to get the best deals and find exactly what your friends and loved ones might like. In this environment it become much harder to stop and think about what type of debt you are building in order to buy these things.
The credit cards offered by many department stores and boutiques do offer some discount benefits up front but they are not necessarily the right option for carrying that debt since they work within specific interest rates you need to qualify to receive. In fact, they are typically high interest cards. This may be okay unless you can’t pay the complete balances before the end of billing cycle. If you don’t those gifts may get more expense due to the hiked interest.
The revolving line of credit is normally a simple way to do your Christmas shopping if you lack the available cash. Now, if you want to get one, you need to have a good credit rating. Additionally, this revolving credit provides flexible capital at low, reasonable interest rates. If you don’t qualify, it’s possible to move your store card balances onto a low interest credit card. There are other options too such as getting a loan to consolidate holiday debt.
Thinking Ahead
If you want to use revolving credit to shop for the holiday you need to some planning beforehand so you can avoid having the real costs exceeding the actual worth of the goods you bought. Obviously, saving strategies and using Christmas club accounts can help you keep things under control. The holidays do not have to be a stressful experience where money worries eat away at the fun and enjoyment. You can spend money provided you’ve consider how you’ll for it and what sort of debt it will lead to in the end. It’s nice to be generous but don’t let your willingness to give (and spend) lead you to added burdens and plenty of regrets when New Year’s rolls around.
You can do it if you take the time to look at the situation before getting caught up in the consumer fervor. Review this information and do more research so you can find a plan that will work best for your particular financial circumstances. This will go a long way towards quieting your worries as the holidays approach and giving alternative gift ideas.