Christmas Archives - Getting Out of Debt Q&A

Americans have more pep in their step this Christmas. According to USAA’s fourth annual Holiday Spending Survey, consumers are more positive about their outlook this holiday gift giving season than last year and feel that they can spend wisely.

The financial giant’s findings were actually in line with recent reports from the National Retail Federation. The survey found that holiday sales are expected to grow above the current 10-year growth rate for holiday sales.

But, with this renewed optimism, there is a danger of overspending with credit cards when you could spend wisely. More people than ever before are planning on paying for some if not all of their Christmas gifts with their credit cards.

And, like always, most are not planning on paying off those credit card balances right away. So, how can you protect yourself from spending too much on your credit cards this holiday? Here are a few tips to help you spend wisely even while using credit cards during this holiday season.

USAA Survey Finds An Increase In Holiday Gift Giving

USAA’s Annual Holiday Spending Survey found that consumers plan to purchase more holiday gifts this year as opposed to what they bought last year. According to the survey, shoppers sentiment with respect to holiday shopping has become more positive this past year from surveys that were conducted in 2011.

For example, 40% of shoppers in 2010 reported that they had plans to scale back their holiday gift giving. Only 31% said they were scaling back their spending in 2011, and just 24% of Christmas shoppers said they were looking at reducing their spending in 2012.

Fewer Shoppers Are Making A Spending Plan

This year only 55% of all shoppers had a budget and a spending plan on how much and who they were giving gifts for this year. This was a worst percentage than the previous two years where 57% in 2011 and 61% in 2010 said they had a holiday gift giving budget. Despite the continued high unemployment and less than stellar financial markets, fewer holiday shoppers are planning to slow down on their holiday gift giving.

For three years in a row, holiday shoppers actually plan on increasing the number and amount of gifts that they are giving their friends, family, and loved ones. To make matters worse, shoppers are not making a spending plan or a budget when they set out to buy their gifts. This is the one place where I’ve strove to be better in my own financial life.

I have decided this year to write down every person that my wife and I are going to buy Christmas gifts for and to also list out the gift that we are buying in advance. Now that I have a budget and a plan, I can stick to what I plan on spending. This year is also one of the first years in a long time where I know exactly how much I am planning on spending.

Things continue to be rough for many families across the country, and the holiday season tends to make problems either show themselves for the first time or grow exponentially. But, that does not mean that you need to add to your debt to make up for it this holiday season.

It is okay to tell your children that Santa is broke this year. Here are several ways that you can avoid adding to your debt this Christmas. There are ways that you can learn how to stay out of debt this Christmas and holiday season.

Use Your Credit Card Reward Points

My wife and I love to earn reward points with our credit card. We use the points at the end of each year as a way to get free gift cards that we ultimately give to our friends and family members each Christmas. Throughout the year my wife and I use our credit card to earn reward points.

The reward points that we earned throughout the year help supplement our gift giving and helps to keep us from going into debt this Christmas and every holiday season. You can find great deals on reward points when you compare credit cards and pick the right one that will earn you the most points on the things that you buy most.

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Earn Free Gift Cards When You Buy

One thing that I love during the holidays are the deals that retailers and especially restaurants give when you purchase gift cards to give as gifts. Many national restaurant chains offer deals such as giving away a free $10 gift card when you purchase $25 worth of gift cards.

These can be great ways to get gift cards to give to your loved ones during the holidays doing something that you normally do anyway (go out to eat). You can also use these gift cards to save you money while eating out at restaurants as well. Whether you give these extra gift cards to friends or save them for yourself, they can be a great way to save money and avoid debt this Christmas.

Look Online For Deals And Set Percentage Points Off

One thing that a friend said to me recently really struck a chord. He said that he never pays retail prices online for anything. He taught me that he always looks for deals and checks comparison sites before making a purchase. He also checks websites like RetailMeNot.com to find some of the best online coupons before buying any items or even services online. This was a great tip that has ultimately saved me a lot of money over the past year or so. Now you can also compare prices right on your smartphone as well.

GiftCards.com and PlasticJungle.com. Some current deals on gift cards on Plastic Jungle let you buy gift cards at the following discounts for these retailers: up to 15% off at JC Penny, 20% off at Boston Market, 10% at Pottery Barn, 7% off Home Depot, 5% off Target, and many other top brands! We also have a good inventory of airline and gas cards.and many other national brands.

Make Hard Cuts To Your List

Do all of your aunts and cousins really need a Christmas gift from you this year? Would they understand if you told them that you are only giving gifts to your immediate family this year in order to save money and avoid adding to your debt this Christmas season? They will most likely understand your plight because we have all been struggling these past few years.

Set Spending Limits For The Holidays This Year

The hardest word to say in the English language is no. No! But, it is a critical one in my family when it comes to staying out of debt this Christmas. My wife and I set a spending limit for the holidays and all of the gifts we give. While budgeting is not a fun topic for anyone, it is incredibly important. You have to have a spending plan and set a limit to keep yourself and your family out of debt this Christmas.

You may not be ready to think about it yet, but Christmas as the holiday season is rapidly approaching us. And, we all know that the holidays are an expensive time of the year. One reason is that we are a very generous society and love holiday gift giving.

One recent survey found that Americans spend over $500 per year on gifts for our friends and family. We love to give and giving can quickly add up and become a budget buster.

But, there are a few ways that you can make this a perfect year and still give gifts that make you just as happy as those who receive them without living a case of buyer’s remorse or a pile of credit card debt.

Five Ways To Make Holiday Gift Giving Perfect This Year

Start Budgeting Now For Christmas Gifts

You should start budgeting for your Christmas gift purchases now if you have not done so already. Do you spend the average of $500 on gifts every year? How much did you spend last year? Do you spend wisely when it comes to your holiday shopping?

Divide that amount by the number of paycheck you have left until the holidays, and that is how much you should shoot for setting aside. Budgeting will help you stay away from using your credit cards and falling into the debt trap.

Now is the time to start thinking about holiday gift giving and the gifts that you will give to your friends and loved ones. Do not wait until the holiday’s are right upon us.

How to Spend Wisely with Credit Cards this Christmas