"Want to know how to avoid credit card debt during the holiday season?"

Want to know how to avoid credit card debt during the holiday season?
 If the holiday season has arrived. It is time to celebrate and party and have fun. Travel plans have been made, list of gifts for family and friends has been prepared, and the arrangements for the party in full gear. This is the season to be jolly, but also the season when spending uncontrollably, this is the last thing ordinary forgotten, so that we desire to be more wild spending
Business people usually cash in on the holiday season to maximize their sales and profits. It will be high season for them. They will inventory, set prices and smiling all the way to the bank. They know that people will be less restrained in their suspending than at any other time. There is a possibility that you may be among the many people who have been suffering from post-holiday season financial stress, and want to make sure it does not happen again. Your success in this case will be determined by how well you control three critical factors: your increased rate of spending, the way in which you finance that spending, and the huge financial demands that follow in the next month.



Financing Using Plastic With the holidays such as Christmas or New Year coming along too fast, people often find they are not saving enough for their celebrations. Moreover, budgeting is an alien concept during this and spending can spiral out of control. To cover the inevitable shortfall in resources, credit cards are an obvious attraction. There are advantages to using the card to pay for your expenses:

I) It gives you free access to your credit one month.II) It gives you the ability to spend beyond your current capabilities.III) This allows you to keep track of your expenses.IV) You do not need to carry a lot of cash around with you.

The use of credit cards, however, does not carry with it great dangers if not carefully controlled. Research shows that spending could increase by up to 35% when using a credit card than with cash. Here are some key principles to help you guard against running into credit card debt problems.


1. Spending PlanIf your expenses exceed your income for the holidays, consider the cost reduction intended holiday, or other charges, to live within your income. I am assuming you have compiled your spending plan during that period. That's where credit cards come to the rescue. Although not readily apparent, the use of credit cards you can create distortions in the management of your finances. Unless you monitor your spending in both cash and credit, there is a danger that you will be convinced if you live within your means. Therefore, it would be wise to start using a credit card if you are not in control of your finances, it means using a spending plan.

2. Debt to Income RatioDo not forget that the use of credit cards that you add to your debt payment reserve. In managing your financial affairs, one of the key indicators to watch is your debt-income ratio. This is a monthly debt payments as a percentage of your monthly income after taxes, and raises a red flag when you play around with too much debt. A ratio of more than 20% is not healthy. If you already have credit card debt is overdue, not add to it.

3. Bridging FinanceThe use of credit cards ideally means short-term financing of your operations. That means completing every debt that uses your card within a few days. Pay the minimum balance is not going to do it. If you are not sure that you can pay it off in full, you wound do yourself a big favor by not using credit cards. If you decide to go ahead and use the card, you have to be ready to charge additional interest and penalties associated with extended credit. This adds to your expenses, and you must be prepared to be ready to reduce other regular expense to accommodate this, if you run the risk of creating ongoing hard-core debt

4. Net WorthCredit card debt that occurred during the festive season is usually for consumer spending to pay for your holiday, buying gifts, entertainment, travel expenses, etc. and create what is known as consumer debt. This kind of debt adds to your liabilities, but contributes nothing to your assets. Your net worth is reduced to the level of consumer debt incurred. Shrinking net worth is not good for your financial health. So do not have your own happy holiday. But as you go about it, finance it in a way that gives you comfort that you will not be laden debt next month.Those are some tips for those of you who want to know how to avoid credit card debt during the holiday season?. Hopefully this literature of benefit to you


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