Thrifty Thinking: Managing Your Finances Pre- and Post-Holidays

Whether it is buying gifts for our loved ones to put under the Christmas tree or looking for great deals for ourselves at all of those big after-the-holidays sales, December and January are definitely a time when we are tempted to spend more than we normally do.

If you have been saving all year for holiday shopping and plan to keep to your budget, good for you! Your post-holiday finances will most likely be headache free. But, if you are among the 25 percent of shoppers who expect to be in debt after the holidays, here are a few tips to make sure the debt does not drag you down.

Avoid opening a new credit card

Opening a new credit card account in December can tank your credit score for the new year. While retailer discounts for opening a store card can be tempting, your credit will decrease up to five points for each credit application. The short-term discount is not worth the long-term credit impact.

Do not pay only the minimum payment

If you put Christmas gifts on your credit card and pay only the minimum payment required by the credit card company, you’ll spend the next three years paying it off. And you will pay a lot more for the gifts you purchased because of the interest credit cards charge on your outstanding balance.

Beware of “free gift card” scams

Getting a free $500 Visa Gift Card would sure make your holiday shopping easier. And scammers know that. So they will try to reel you in with the promise of gift cards. Never trust email messages that claim you have won a gift card. Most major retailers do not have sweepstakes for consumers in the form of gift cards.

Always read the fine print

Some businesses will offer you “Buy Now, Pay Later” financing options. While the interest rates might be better than what your credit card offers, make sure you understand exactly what you are committing to. Payments can be due as early as two weeks after purchase.

Overall, remember that it is never too late to adopt healthy habits. If you are not happy with how you spent during this holiday season, commit now to do it better in 2022.

– Jasmine McCall is a millennial influencer, serial entrepreneur, keynote speaker, income strategist, and world traveler. As a mompreneur and founder of The 20 Minute Credit Fix, Jasmine specializes in business education, credit management, and money makeovers for millennials. As CEO & Founder of the Jazzy Mac brand, Jasmine inspires her audience daily through her lifestyle channel “Life With Jazzy Mac” on YouTube, which has garnered almost 1 million views.