5 Habits to Prevent Credit Card Spending Over the Holidays

Buying those last-minute gifts and rounding up all of the items on your holiday gift list can take its toll on your wallet and many of us turn to credit cards to pay for holiday expenses. Even though some credit card companies offer cash back rewards and points for every dollar you spend over the holiday season, you still may end up in some serious debt after the revelries subside. If you want to keep debt under control and stay on top of your finances this holiday season, you’ll need to acquire some spending habits that will prevent you from using credit cards altogether.

Use these five tips and ideas to prevent credit card spending over the holidays:

1. Make a list and check it twice. Make a list of items you have to purchase and avoid buying anything that is not on your list. Impulse purchases and last-minute items that you haven’t accounted for or budgeted for can make you turn to credit cards for some extra help. Prevent credit card spending over the holidays by making a list of all of your needs and wants.

2. Research the price of the item online. Avoid sticker shock when you get to the store and the urge to make a purchase under pressure when you see something on sale by doing some research online. Finding out what other retailers are selling a certain item for and looking for online deals can help you get a better idea of what the actual market price of the item is at any given time. This can encourage you to set aside some cash for your purchase and budget for it so you don’t have to use a credit card to buy it.

3. Don’t take credit cards to the store. One of the best ways to prevent credit card spending over the holidays is to avoid taking credit cards with you to the store in the first place. Having the credit card in your wallet can make it very tempting to use it, so eliminate the temptation altogether by leaving the credit cards at home. Plan to buy on a cash-only basis through the holiday season and you will help yourself stay in control of debt.

4. Avoid signing up for in-store credit cards. Many stores are offering a large discount on your purchase only applicable to the items you buy when you sign up for a credit card. You’ll need to charge your entire purchase in order to get the discount, and these credit cards usually carry higher than average interest rates. Don’t sign up for in-store credit cards just get a discount. You can find similar items on sale at other stores and need to get into the habit of paying for these with cash.

5. Set a weekly budget. Since you are likely to hit the stores at least a few times a week over the holidays, create a realistic spending budget so that you know how much cash to set aside each week. Knowing how much you are going to spend can help you make better financial decisions and prevent any dependency on credit cards.