November’s here, which means the countdown to the holiday gift exchange has officially begun. (Topping the most-wanted gift on Santa’s list is the almighty iPad.) And while surveys show we plan to spend a little more money, a new poll by Consumer Reports finds we plan to make less use of our credit cards to make purchases. After all, some 13.6 million Americans are still grappling with last year’s holiday debt. Talk about a long hangover.
Here are my top three tips for staying on budget.
1. START EARLY
Consumer Reports finds one in five anticipate shopping at the last minute on Christmas Eve. The danger there is that you can easily overspend when you’re shopping late in the game. Not to mention you’ll have slim pickins’. That black cashmere scarf you were planning to get your mom is now only available in neon plaid.
2. OPT FOR LAYAWAY
Back by popular demand, more stores – big and small – are offering this payment plan which lets you bypass the credit card and pay for items in small cash increments before taking it home. Chain stores offering layaway plans this season include Toys R Us, TJ Maxx, Marshall’s, Sears and Kmart. Some smaller retailers and boutiques are also participating but you may need to inquire within. It’s not always advertised. Just ask the store manger if they can provide a layaway arrangement.
3. PAY WITH POINTS
I know you’re not interested in using your credit card this holiday but if you have racked up points this year from using a rewards card don’t let them go to waste! Use them to purchase gifts or gift cards for friends and relatives. This is definitely part of my spending strategy this holiday. It’s as close as you’ll get to shopping for free!
Need more holiday budgeting tips? We have ‘em.