Spending Mistakes That Will Trap You Into Holiday Debt
Holidays are about making great memories and spreading love and cheer but don’t get so caught up in the “Christmas spirit” that you stop thinking about money altogether. Sometimes, in the process of trying to have fun and make people happy, you make spending mistakes that lead to holiday debt.
In this article, we will take a look at the spending mistakes that can lead you down the road to holiday debt.
Spending Mistakes That Lead To Holiday Debt
You Don’t Have A Shopping List Or Budget
You may be an intrinsically thoughtful person who loves giving presents to your family, friends, and colleagues. However, your budget may not be as big as your heart.
When you impulsively buy something because so-and-so will love it, or give in to somebody’s expensive request because “he never asks for anything the rest of the year”, you’re shopping according to your feelings, not your finances.
That’s one of the most expensive spending mistakes you can make. Before stepping into a store, make a list and set a budget. If necessary, decide not to give gifts at all, and look for other ways to show your love and appreciation—if they’re really your good friends and family, they’ll understand.
You Say Yes To Everything
Christmas may be a time for sharing and caring, but there should be limits. If you’re always volunteering to provide food, lend your car, or host the next party (or reluctantly agreeing to it, because now everyone assumes that you will) you’ll break your holiday budget.
If you can’t back out of it, there’s still a way to avoid holiday debt: ask people to pitch in. Host the party, but make it a potluck. Lend your car, but tell them they need to pay for the gas. And if you have to prepare food, either ask them to pitch in or use cheaper ingredients and a recipe that feeds a crowd.
You Get Blinded By Sales
Sales can save money if you buy something that you really needed. However, one of the most common spending mistakes is to shop just because there’s a sale. You get so caught up in how everything’s a bargain and grabbing those limited offers, that you don’t realize that you’ve got thousands of dollars of holiday debt on your credit card with no idea of how to pay it.
We’re not saying that you shouldn’t take advantage of sales, but put a cap on it. Allot a certain amount of “fun money” in your holiday budget, and then prioritize your purchases. Do you really need new shoes and clothes, or do you want to invest in a bigger but more practical purchase like a laptop for work?
You Give In To Peer Pressure
Don’t feel compelled to keep up with the neighbors or meet social media standards. Life is not a contest of who wears the trendiest clothes, has the prettiest décor, or gives the biggest party.
Remember your financial goals: do you want to feel rich for a day but wake up to holiday debt, or do you want to be rich by saving your money?
To avoid holiday spending mistakes you’ll regret, always ask yourself: “Do I really need or want this, or do I just feel guilty/pressured/jealous?” Again, your budget—not your feelings—should guide your decisions.
You Do Everything Last-Minute
Everybody gets busy during the holidays, and it’s hard to juggle work, household errands, and all the holiday activities. That’s why a lot of people end up buying last-minute gifts online, having a party catered, or shopping at the nearest mall or supermarket even if it’s notoriously more expensive than others.
If you plan ahead, you’re less likely to make huge spending mistakes simply because you ran out of time. You can compare deals, find cheaper options, rent, or DIY instead of buying outright.
You Don’t Track Expenses
Small expenses and impulse buys add up and lead to holiday debt. So, it’s important to write down all your purchases in an app or notebook. You can immediately calculate if you’re staying within your holiday budget, and rectify spending mistakes before it gets out of control.
Know Where To Get Emergency Money
You shouldn’t get into holiday debt for frivolous purchases. However, there are some situations where you need to get a loan, and for good reason. For example, you may have medical or hospital expenses, car or house repairs, a backlog of rent or utilities you need to settle before the end of the year, or other personal financial emergencies.
When this happens, you can quickly raise cash for such urgent expenses with a title loan online. A title loan is a secured loan where you use your vehicle title as collateral. You can borrow up to $15,000 depending on the vehicle’s market value, and you can continue to use your car while you pay off the loan.
You can apply for a title loan even if you have bad credit, and the only requirements are a lien-free vehicle title registered under your name, a government-issued ID, and a vehicle for inspection.
With Auto Cash USA, you can even get a title loan online. We connect you to the nearest accredited lender—just fill out the form and they will call you! You don’t have to go through the trouble of having to look for a lender and schedule an appointment on your own. Our lenders will connect you to get the title loan process started.
Get Started Today With Auto Cash USA
An online title loan is a fast, simple, and convenient way to raise emergency money for urgent expenses. To get started on your request, simply fill out the form online to connect with a licensed lender near you today.
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Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.