The holiday season is here and everyone is looking to have a good time with family and spend a ton of money they do not have or intend to keep track of. While it is imperative that you do treat your relatives and friends to a good holiday, you should do this in an affordable way. About 43% of Americans are due to get in debt in this season and to a lot of them, these debts are inevitable. A survey shows that a lot of them during this season suffer from depression and anxiety because they feel pressured into gift giving and hosting dinners and buying tons of stuff. In this article, we will discuss holiday debt and its effects.
Effects of Holiday Debt
A few people have actually confessed to arguing more about finances with their better halves because this season just puts a lot of people under stress. Some other people also resort to taking out loans they originally wouldn’t have and usually do not tell their friends and families just so they do not have to justify it. The problem with amassing so much debt during the holidays is that it is difficult to pay off in the following year.
A lot of people who took loans in the previous year during the holidays are still struggling to pay those loans even after a year. The effects of this are depression, lack of zeal and work productivity, anxiety and a lot of other ill effects that could arise from a life of debt and an inability to pay them off. The truth is this situation could be very overwhelming and it is best if it is avoided rather than managed. There are some ways you could stay away from holiday debts just so you don’t spend the New Year unhappy.
Ways to Avoid Holiday Debts
- Budget
A lot of times, this is underrated and this may just be the tidbit you’re missing. When you plan your finances and budget how everything works, it is easier to stick to the plan. One of the ways to avoid getting piled up with debts this season is to budget all year round. Majority of people just allow the holidays to happen on them and this isn’t what you want. These holidays are recurrent every year and it is best to plan ahead and budget some money every month throughout the year for your holiday spending.
- Deals
There are a ton of vendors that advertise holiday deals all year around and you should look for these. Booking for a holiday family trip in June and paying for it in bits up until the holidays is a lot better than getting overwhelmed during the festivities.
- Get Creative
There are a lot of people that appreciate the simplest of gifts. This means you could get creative and crafty at the same time and make some presents yourself. So you could buy used consignments or even regift some items.
Let’s face it, most people have let the holidays get in the way of responsible spending. If you find yourself in overwhelming credit card debt, you should get professional guidance. Elias Dsouza of Dsouza Legal Group has been helping people manage their credit card debt for over 15 years. Contact Elias today for a free consultation.