Many consumers tend to make many credit card mistakes over the
holiday season. Credit cards have contributed to financial uncertainty.
If you repeatedly make the same mistakes with credit cards, you could be
in a world of trouble. Around the holidays, people tend to make even
more mistakes with credit cards than normal. Here are a few of the more
important mistakes to avoid during the holidays.
The biggest mistake that many people make around the holidays is
overextending themselves with credit cards. They are under the
impression that they have to buy the biggest and the best presents for
everyone on their list, regardless of what it does to them financially.
The truth is that most of your friends and family members would
not want the presents that you are getting them if they knew how bad it
was going to hurt you financially. Getting gifts for your friends and
family is important, but it is not so important that you should charge
things that you cannot afford.
Around the holidays, cash seems to be low for everyone. We go to
holiday parties, exchange gifts, and may even have travel expenses to
see family. With all of this cash going out, many people just put their
expenses on their credit card and worry about it later. This is the
biggest mistake that most people make with their credit cards around the
2. Everyday Needs
Another common mistake that many people make around the holidays
is to pay for their everyday purchases with a credit card. They are low
on cash because they have spent most of it on presents or other
expenses. So when they need to go buy groceries, they just end up
putting it on their credit card.
Plan ahead and make a decision that you are going to save up a
little money each month so that you can be prepared for the holidays.
Just know that you will have the same expenses next year and you will
never get ahead if you keep charging regular things on your card.
3. Leaving Balances
Leaving large balances on credit cards is another very common
mistake that many people make around the holiday season. They rack up
these large credit card balances and then do not worry about paying them
off for months. They think that things will be better next year.
They plan on getting a tax refund and paying off the credit cards
then. However, sometimes the refund will be spent on some other need
later. This ends up making the balances sit there longer and the
interest keeps growing. Credit card interest is not something that you
want to worry about. It can end up crippling you financially if you do
not address the balances quickly.