December 9, 2022 | by Katie Claflin
Categories: Financial Education, Savings
The holidays are one of the most expensive times of the year, and with the increased costs, many housholds may find themselves with a larger credit card bill than expected come January.
According to Deloitte's annual holiday retail survey, the average American will spend nearly $1,500 this holiday season.
For those applying their holiday purchases to a credit card, the sudden increase in debt could spell trouble for their long-term financial goals. For example, while debt itself doesn't necessarily prevent you from buying a home, the amount of debt you have directly affects the size of the mortgage you qualify for.
What's more, credit card debt is particularly harmful to your financial future. Not only are interest rates significantly higher than other loan types, but if you're only making the required minimum payments, it could take years to pay off the balance.
With help from NerdWallet and Credit.org, we've compiled four tips to help you avoid running up your credit cards this holiday season. Collectively, these suggestions may help you spend within your means and avoid debt that could derail your financial goals.
If you need help creating your holiday spending budget or are concerned about any aspect of your finances, we recommend contacting a nonprofit financial counselor. These trained professionals can help you create a plan to reduce debt, increase savings, buy a home, or achieve other financial goals.
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