What to do NOW to Avoid Holiday Debt

If you were aghast at how much you spent on holiday gifts when the credit card bills arrived last January, now is the time to start thinking about how to avoid a repeat performance of holiday debt. Even though it feels painfully early to start thinking about the holidays, starting now will give you plenty of time to budget, build a shopping fund and do a little early shopping so you’ll hardly have a bill to pay.  

By planning for the holidays early, you'll have plenty of time to budget, make a shopping list and do a little early shopping before holiday madness! #debtfree #debt #debt101 #personalfinance #personalfinance101 #holidays #holidaybudgeting #holidaydebt

Look Back

It’s an ideal time to set a budget for your holiday shopping. Make a loose list of what you bought and spent last year, and then evaluate your current financial situation. Can you spend the same, spend more, or do you need to cut back? If you need to cut back, look at groups you exchange gifts with, like family or co-workers, and suggest a different scenario, like drawing names, a White Elephant exchange, or with family, propose that adults only give gifts to the kids. The other people in your group are probably in the same boat and will appreciate the suggestion!

No Holiday Fund? Start Stashing Now

If you don’t have a holiday fund, it’s not too late. Set up auto withdrawals TODAY with an investing app like Stash. It’s so easy to set up an account and it will help you stay on track (it’s also a great way to create smarter habits moving forward.) By Black Friday, you’ll have a nice little pot to shop with. And stay tuned, they’re launching a really exciting cash back program that I’ll have to tell you about! 

Use My Favorite Tools to Save

To avoid a mad dash in December – and potentially overspending because you’re in a rush – start shopping now. As you build your gift list, set deal alerts with a site like Slickdeals.net, so you’ll know when your items go on sale or create your own sale by shopping with a discounted gift card from GiftCardGranny.

Get the Best Deal on Amazon

You can find so many amazing gifts on Amazon (and shop in your pj’s!). But it’s hard to tell whether or not you are getting the best price. There’s a nifty new tool called Ranktracer, which provides pricing data for thousands of products sold on Amazon, including tons of Holiday items. This tool will give you a sense of whether you should buy now or wait, and if there’s a coupon that can be applied to your purchase.

Get Creative

Starting early can also give you time to make some of your gifts, if you’re creative that way.  DIY gifts can be a huge money saver, and  the act of hand-making knitted items, ornaments and other DIY gifts, will be so much more pleasant if you’re not frantically throwing things together at the last minute!