(NC) — When we’re in the holiday spirit, it can be tempting to overspend, but is it worth the financial stress?
Here are tips to keep in mind during this wonderful time of year to help you spend wisely.
Have a plan for gift giving
If gift-giving is important to you, make a budget and set a spending limit for each person on your “nice” list.
Look out for sales to keep your costs down, just keep in mind how long the person will have to return it if it is not right for them.
To lower expenses, you may also consider offering homemade gifts such as baked goods or handmade candles.
Making your own gifts makes them extra special and may also allow you to spend quality time with your family while preparing them.
Be careful with buy now, pay later offers
Many companies offer buy now, pay later plans, allowing you to purchase something without having to pay for it in full right away.
Accepting this type of payment plan may seem like a great deal, but before signing on the dotted line do some thinking.
Determine if you can afford the higher interest charges and applicable fees if you miss a payment or can’t pay off the balance by the due date.
If you are already struggling with debt, making purchases this way could encourage you to spend beyond your means and make it hard to keep up with payments.
Debit vs. credit
It might be convenient to fund your holiday spending with your credit card, but between rising interest rates and the higher cost of living, managing your debt load in the new year may be a challenge.
Your 2023 January credit card bill may be extra expensive because of a class action settlement between Visa, Mastercard and merchants.
Businesses now have the option of adding a surcharge of up to 2.4 per cent when you pay by credit card. To avoid these fees, consider another method of payment, such as debit.
Find more tips, tools and resources to help you spend wisely this holiday season, and all year round, here.
This report was first published by News Canada.