Nearly one-third of
adults say they spent
more than they
planned on holiday
gifts. Most spent
$100 to $500 more
than they planned.
http://www.ace.uiuc.edu/cfe/ccs/index.html
F A C T S H E E T 5
Control Your Holiday Credit
Card Debt
The holidays should be a joyful time for you and your family. But
for many families it’s tough to find the extra cash for holiday
expenses. Using your credit cards solves that problem for now but
can create other problems. Most families don’t plan to run up high
balances on their credit cards during the holidays — it just happens.
Nearly one-third of adults say they spent more than they planned
on holiday gifts. Most spent $100 to $500 more than they planned.
Many families find it hard to pay off an extra $500 on their credit
cards after the holidays.
How can you control your holiday spending? Start by making a
written plan for holiday spending and gift giving. Start making
your plan no later than October or November. Think about how
much you can afford to spend for gifts as well as decorations,
holiday meals, and travel.
Set spending limits for gifts for each person as well as for the other
items in your spending plan. Start looking for bargains early. If it’s
been a tough year for you, think about cutting back on what you
usually spend during the holidays. Talk with friends and family
about not exchanging gifts, drawing names so you give fewer gifts,
or setting dollar limits on gifts.
Decide if you are going to use a credit card for holiday spending. If
you decide to use only cash, leave your credit cards at home when
you go shopping so you won’t be tempted. If you write checks, be
sure to record each in your register and figure the balance before
writing another check. Stay within your limit!
If you need or want to use a credit card, pick just one to use for your
holiday spending. It’s much easier to control your spending on one
card than on three or four. Write your spending limit on an
envelope and put it in your wallet. When you use your credit card,
write the amount on the