Have you been naughty or nice this holiday season with your credit card spending? If you haven't been keeping track, you'll most certainly find out when your credit card statements come in January. Here are seven naughty holiday pitfalls and the nicest ways to avoid them:
Credit Card Limits
Naughty: Charging more than one-third of your card's credit limit in any one statement period this holiday season.
Nice: Make sure your balance stays under 33 percent of your total credit limit. This will ensure you don't have any negative impact on your credit score with your holiday spending.
Spending
Naughty: Spending more than you normally would because you are charging it rather than paying in cash.
Nice: Whether you use credit, cash or a check, keep track of every dollar you spend so you stay in line with your holiday budget.
Paying For Gifts
Naughty: Charging gifts on your credit card that you normally wouldn't purchase if you didn't have available credit.
Nice: Spend only what you can afford. Remember, the best gifts aren't necessarily those that cost the most, but those that come from the heart.
Store Credit Cards
Naughty: Opening a new credit card account while waiting in line to save a few extra dollars on your purchase.
Nice: Only open a store credit card account after you have thoroughly researched the offer and the card's fine print. Make sure it is beneficial in the long run.
Impulse Buying
Naughty: Buying that gift just because it looks like a good deal.
Nice: Make a holiday list and a budget before you begin shopping. This will help you avoid impulse buying and keep you on budget for the holidays.
Gift Giving
Naughty: Giving holiday gifts to people who are not on your list or giving extravagant gifts when you can't afford it.
Nice: Stay on budget and set expectations for gift giving. This will ensure both you and the recipient of your gift are happy when you exchange gifts.
Holiday Spirit
Naughty: Ruining the holidays by making it all about the presents.
Nice: Remember the true meaning of Christmas. Make this holiday more about spending time with friends and family rather than the gifts.
These seven simple tips will you begin 2013 in good financial shape.
