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How to Best Manage Debt This Holiday Season

By: Michael Millington

If you’ve taken your finances into account for the holiday season, chances are that many of you will end up in debt. Sure, having debt into the new year doesn’t have to be an absolute certainty, there’s usually a bit of financial hangover after the initial shopping frenzy dies down. Since people are not created equal in finance, not everyone adheres to the same rules.

People with high credit scores may have more options in dealing with debt than those with lower credit scores. However, regardless of what your credit report looks like, it’s still entirely possible that you don’t know how to handle the overflow that is commonplace with the end-of-year holiday season. Here we will discuss how those with great credit (credit scores of 700-800) can get out of debt.

Having purchase credit cards can evoke severe debt when misused or not cared for over time. Without a suitable financial plan heading into the holiday, it might spell terrible things for your future. Yes, even those with excellent credit can quickly fall into the mire of a subpar score. In order to avoid these holiday hang ups, look to implement some of these strategies while shopping for the season.

Create and Maintain a Holiday Budget

Work on a budget when you’re making your purchases. Limiting the amount of money you spend for your gifts and decorations will help keep your finances organized after the season passes. Your bills won’t look foreign and you’ll at least know what you’re walking into when it comes time to pay. Either keep track of everything you’ve purchased or make all of your purchases on one particular credit card.

Stick to Using One Credit Card

If you use one particular credit card to make all of your purchases, it will be easier to keep track of once the monthly payments start to roll in. Not only does this help to keep your purchases organized and in the same bill, it also eliminates the possibility for extravagant interest rates that other cards might come with.

Always Pay More than the Minimum Amount

Make more than the allotted minimum payments when the time comes. This can help to alleviate any payments you have to make when the holidays are over, especially when interest is involved.