How to Avoid Taking on Too Much Debt While Shopping for the Holidays | Jobs Reply


If you’re putting off holiday shopping — or starting at the last minute — you’re probably trying your best to avoid going into debt when buying gifts. Taking on too much debt can cause many negative consequences, such as a dip in your credit score if your credit utilization is too high. However, the right practices can help you spend within your means and buy vacations responsibly.

You will have to dedicate some time to it, but the savings will be worth it in the long run if it brings you closer to your financial goals. Below, select the details of a few tips to stay within the budget and reduce your spending.

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Stick to your budget

You may create a well-intentioned budget at first, but once you get into the shopping frenzy, you may find yourself having more people to buy from or making unexpected splurges. Budgeting will ensure you know where every dollar is going, which can be an effective form of accountability. And you want to avoid making a budget but don’t look at it again.

Mint is an app that offers budgeting and tracking. It tells you how much budget you have left, and you can make as many categories as you like, such as holiday food, decorations and gifts. You Need a Budget (YNAB) is another great way to help you plan your finances by encouraging you to put every dollar to work.

Shop around for the best deals

Sometimes, the price tag you’re looking at is the best you can get. But more often than not, there is a better deal out there. Taking the time to read the Internet or visit other stores to find low prices on the things you need can save you a lot of money — especially if you have a lot to buy. It can all add up quickly.

Yes, shopping somewhere can be time-consuming, but services like Honey or Capital One Shopping can help when it comes to finding discount codes from different retailers, in addition to giving you extra cash back. By taking the time to shop around for the best price before you buy, you can save significant money – sometimes even hundreds of dollars when you shop online in bulk.

Capital One Shopping

  • Costs

  • How to save

    Get Shopping Credit (which works like cash back) on eligible purchases, automatic coupons and price comparisons.

  • How to use

    Download the Capital One Shopping app or install a browser extension.

  • How to find your savings

    Shopping credits can be used to purchase gift cards.

PayPal Honey

On PayPal Honey’s secure portal

  • Costs

  • How to save

    Earn Honey Gold points on qualifying purchases, automatic coupons and price comparisons.

  • How to use

    Download the Honey app or install the browser extension.

  • How to find your savings

    Use Honey Gold points for gift cards.

Open a new card to get cash back and 0% APR

If you eventually need to use a credit card to offset some of your vacation expenses, it might be a good idea to consider using a card that allows you to earn cash back that can be used as a statement credit. A statement credit can be used to pay off your debt so you have less money to pay out of pocket.

Plus, some cash back cards offer generous welcome bonuses and a 0% APR introductory period, which means you can save on interest charges if you need to pay off your next purchase.

Chase Freedom Unlimited® allows cardholders to earn 5% cash back on travel purchased with Chase Ultimate Rewards® (which would be great if you have gifted travel vouchers this year), 3% on drugstore and restaurant dining and 1.5% in all the others. shopping. This card also offers a welcome bonus: Cardholders receive an additional 1.5% cash back on all categories up to $20,000 spent in the first year.

The Wells Fargo Active Cash® Card is a solid choice for earning 2% rewards on all purchases, and it comes with a $200 rewards bonus after spending $1,000 in the first three months. This one also has a 15-month introductory period of 0% APR on eligible purchases and balance transfers from account opening (after, 18.74%, 23.74%, or 28.74% variable APR). For balance transfers, the Active Cash Card has an introductory balance transfer fee of 3% ($5 minimum). To qualify for the 0% introductory APR, balance transfers must be made within 120 days of account opening.

Chase Freedom Unlimited®

  • Rewards

    Enjoy 5% cash back on travel purchased with Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drug and restaurant purchases, including eligible pick-up and delivery services, and 1.5% on all other purchases

  • Welcome bonus

    Earn an additional 1.5% on all purchases (up to $20,000 spent in the first year) – worth up to $300. That’s 6.5% on travel purchased with Chase Ultimate Rewards®, 4.5% on restaurants and drugstores, and 3% on all other purchases.

  • Annual fee

  • Introduction APR

    0% for the first 15 months from account opening on purchases and balance transfers

  • Standard APR

  • Balance transfer

    An introductory fee of $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, it’s either $5 or 5% of the value of each transfer, whichever is greater.

  • Foreign transaction currency

  • Credit is required

Wells Fargo Active Cash® Card

On Wells Fargo’s secure site

  • Rewards

    Unlimited 2% cash rewards on purchases

  • Welcome bonus

    Earn a $200 cash rewards bonus after spending $1,000 on purchases in the first 3 months

  • Annual fee

  • Introduction APR

    0% introductory APR for 15 months from account opening on eligible purchases and balance transfers; balance transfers made within 120 days are eligible for the introductory rate

  • Standard APR

    18.74%, 23.74%, or 28.74% variable APR on purchases and balance transfers

  • Balance transfer

    3% introductory fee for 120 days from account opening, then up to 5% ($5 minimum)

  • Foreign transaction currency

  • Credit is required

Bottom line

Saving money during the holidays may sound impossible, but there are some ways to make sure you don’t overspend on any holiday expenses. For the most part, creating a budget and actually sticking to it is key. But if you find yourself needing to splurge or two, consider shopping before you pay a single price and use a cash-back card to get statement credits to lower your card balance.

Editing note: The opinions, analyses, reviews or recommendations expressed in this article are solely those of the editorial staff, and have not been reviewed, endorsed or otherwise endorsed by any third party.



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