Tuesday, November 25, 2014

Thrifty Thinking: 4 Tips to Avoid the Credit Card Holiday Shopping Hangover

The killer deals on Black Friday and throughout December can be tempting – it can be easy to justify going overboard on gifts for the kids or splurging on a few extra treats for yourself. But when the bills start piling up, you may wish you had shown a little more restraint.  But there are several ways to avoid getting into trouble with credit card debt over the holidays, says Joseph Rehm, an enrolled agent with the Tax Defense Network (www.taxdefensenetwork.com), a Better Business Bureau A+ rated tax resolution company. Here is Rehm’s advice:
1.      Buy online, but check an address: Currently, there is no internet sales tax. Online retailers are only required to charge sales tax on goods shipped to states where they have a physical presence. But don’t wait too long, because Congress may pass a law that would require online retailers to collect sales tax for the states where the goods are shipped.
2.      Look for free shipping: Many online stores offer free shipping with a minimum purchase. You can save a bundle on shipping by taking advantage of this. Also, December 18th is Free Shipping Day: More than 550 merchants offer free shipping with guaranteed delivery by Christmas Eve - perfect for procrastinators!  
3.      Consider traveling out of state: Save on sales tax by doing your holiday shopping in a state with a lower rate. When making large purchases, a lower sales tax rate will help you keep some money in your pocket and make the drive out of state worth it. Delaware, Oregon, New Hampshire, Montana and Alaska have no sales tax at all, while other states, like New Jersey, Minnesota and Vermont, have no sales tax on clothing.
4.      Take advantage of rewards programs: Many credit cards have advantageous rewards benefits. If you have to use a card, use ones that will give a little something back to you as well. Double check your card’s benefits online to make sure you are taking advantage of all the benefits they have to offer.
About the Tax Defense Network
The Tax Defense Network’s nationwide network of tax professionals provides financial advice on a variety of subjects including payroll taxes and tax debt resolution. The Tax Defense Network’s team of licensed tax professionals, enrolled agents, and CPAs has resolved more than $120 million in tax debt. The Tax Defense Network is A+ rated by the Better Business Bureau. Learn more about the Tax Defense Network on Twitter or Google+.

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