How to keep your credit card debt low during the holidays
Swiping that plastic can be tempting when shopping over the holidays. Here's how to avoid it.
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Credit card debt is a real problem for many Americans. About a quarter of credit card users carry a balance from month to month, and across the nation, outstanding credit card debt currently amounts to $1.7 trillion. Throw in record-high interest rates, which average above 23% on the typical credit card, and it's harder than ever for many consumers to break free.
With the holidays fast approaching and holiday spending expected to rise, it could be tempting for consumers to charge even more to their credit cards — compounding debt issues even further. Want to make sure that won't happen to you? Here's what experts say you can do.
Find out how to tackle your credit card debt here.
How to keep your credit card debt low during the holidays
These strategies can help you keep your credit card debt down during the holiday season:
Keep score
Certified financial planner Mike Chadwick says the best strategy for keeping credit card use low is to simply "keep score" — maintaining a detailed list or record of everything you spend and buy as you approach the holidays.
"People have credit card debt because they spend more than they take in," says Chadwick, president of Fiscal Wisdom Wealth Management. "If you keep granular records, it'll never happen."
You can even add extra details about why you made the purchase in the first place and reflect on how that purchase impacts your finances.
"One method that helps me find a deeper truth is to journal about what is unfolding and whether those actions are actually positive for my future," says Jay Sharifi, founder of Legacy Wealth Management. "Your credit cards don't run themselves up. Hold yourself accountable."
