The Holiday Temptation

With all of the monthly expenses throughout the year, it is difficult to set aside the extra money that is most assuredly required for Christmas.  And when family giving is rather extravagant, it is difficult to be the one who has to “cut back” and do less than others.  With all of the holiday hype, however, including new products, glamorous options, and the bombardment of catalogues and internet advertising, it is easy to sit on the telephone or the computer and rack up credit card debt, buying expensive gifts for everyone on one’s list.  Visiting the mall can be just as dangerous, because the holiday spirit catches on and the atmosphere is spent, spent, and spent.

Here Come The Bills

In January, the bills come in, and there is the shock of exactly how much debt has been accumulated and how long it will take to pay it off making the minimum payments on each of several credit cards.  And all of this must be done before next Christmas, because the spending will have to occur all over.  Thus the cycle begins of debt for one’s entire lifetime

Paying the Piper

Paying off the Christmas debt needs to be a matter or both organization and self-discipline.  It is time now to write down each credit card amount total.  Divide each of the totals by the minimum payment required, and you will get a number of months.  Begin with the smallest number of months, and put as much onto that bill as possible while be certain to make the minimum payments on the others.  Once the first card is paid off, take that payment and add it to the minimum payment you have been making on the second one.  Continuing this pattern, you will pay off the cards with as little interest as possible given the circumstances.  Any income tax refund or “windfall” of money must be spent on these bills and not on any luxury or unnecessary items you may want right now. 

Avoid the cycle

Though it may be difficult, it is important to develop some type of savings plan for Christmas.  Open a savings account specifically for Christmas and nothing else.  Throughout the year, put something into this account each month. The more cash you have for next Christmas, the less you will have to put on a credit card.  As well, it would not be unseemly to suggest to family and friend that everyone cut down on the gift giving in future years.  After all, many of them may be doing just as you are and regretting it later.  Christmas can be just as fun with small gifts or with name-drawing among adult family members and reserving the larger expenditures for one’s children or immediate family.

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