RICHMOND, Va. (WWBT) -It may be spooky season, but admit it, you’re already thinking about the holidays and buying gifts.
Experts say we are often very impulsive with spending during October and November, and by January or February, many of us feel depressed by so much debt.
They say right now is the best time to start planning so you don’t end up with a holiday debt hangover.
“It’s really important, as you’re entering into the holiday season, to have a plan around your giving, around your celebration options, even around your decorations,” said Cherry Dale, the Senior Vice President of Financial Education with Virginia Credit Union.
Whether using cash or credit or dipping into your savings, making a budget at this time of year can be brutal for your wallet.
Dale says your first step is making a budget and a spending plan.
“For gift giving, I think it’s really important to think through all of the people in your life that you are going to give gifts to and put a number to each person and then stick to that number as you’re going through your shopping list,” Dale said.“ Let’s say you have four people in your family, and you’re looking at, okay, I do have $400. Each one gets $100.
She also encourages using a credit card, but only spending to pay back quickly what you can afford to pay back quickly.
“Know how much interest you’re going to be charged for that credit card if you can use that card and pay it off immediately,” Dale said.
Dale says the “buy now, pay later” options are useful, but you shouldn’t bank on them.
“It can impact you in a negative way,” she said. “To where if you are not paying it back on time, it will show up on that credit report. So being aware that, yeah, it seems easy at first, but it is a loan. There could be interest associated with that loan, and you have to pay it back on time.”
If those options aren’t for you and you’re still feeling financially frustrated, Dale says don’t be afraid to regift items or even ask for outside help.
“If you are struggling and you want to get something for your children, there are so many nonprofits out there that are willing to help families in need,” she said. “They would love to help the family.”
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