Christmas is almost around the corner. But before that its Thanksgiving time. Many people make a list of things they want to buy during Thanksgiving. It also includes the gifts they will be giving to their family and friends for Christmas. No doubt it shakes our budget little bit. Using a credit card to shop and not keeping an eye on your spendings can easily lead to a debt hangover in the new year. Using the credit card responsibly and knowing what pitfalls you should avoid can make your holiday shopping experience as smooth as possible. These credit card strategies can help you in saving yourself from later debt.

 

 

• Pay your bills on time: Late payment of your bills meaning paying a late fee. If you miss a payment, don’t wait until the next due date to send your payment, send your payment as soon as you remember. Setting a reminder would be a good idea for not missing any important payment dates.

 

• Know your budget before spending: Everyone has a limit beyond with they cannot spend. One should know that limit and then spend. Keeping a budget helps ensure you have enough money to cover your monthly expenses. Plan far enough in advance and you can take early action if it looks like you won’t have enough money for your bills this month or next.

 

• Track your monthly expenses: Once you know your budget, the next step is to keep a watch on your monthly expenses. Think of making an excel sheet for recording your monthly bills. This will give you a good idea about your current state.

 

• Stick to your budget: Track your expenses vs. the budget. Keep an eye if you are going out of the limits. If you stay on track within limits then great!! Else look for opportunities to get on track.

 

• Create a monthly bill payment calendar: Use a bill payment calendar to help you figure out which bills to pay with which paycheck. On your calendar, write each bill’s payment amount next to the due date.

 

• Avoid situations that trigger shopping desire: If you are an impulse buyer and love to do online surfing that turns into impulse buys, find an alternative. Try to shop smartly. Most people do online surfing when they are sitting ideal so use that free time to do something else.

 

• Decide which debts to pay off first: Credit cards have higher interest rates if paid late. Of all your credit cards, the one with the highest interest rate usually gets priority on repayment because it’s costing the most money.

 

• Know when you need advice: Try to work with your credit card company. While the credit card company is under no obligation to accept less than the minimum requested payment, do not worry. Work with them and see if you can work out payment agreements. Colony Associates is one such company which will give answers to all your questions regarding your low-interest rate credit card debt.

 

These days credit card is the easiest and most convenient way of payment. It has made our lives convenient but it is our responsibility to keep a track of our payments so that this convenience will not change into a burden.