The Dangers Of Holiday Credit Card Debt
Getting into holiday credit card debt seems inevitable. There are so many gifts to buy, of course, but also travel to cover, decorations to buy, and holiday parties to pay for. And many that find themselves going into holiday-related debt feel it’ll take at least half a year to pay it off. The danger here is not just accumulating holiday credit card debt; it’s that debt has a potentially long-lasting impact.
Here Are Some Dangers To Holiday Credit Card Debt
The holiday season’s connection to credit card debt is clear and staggering. We know how easy and fast it is to just swipe your card at the register and be on your way. And when it comes to the “buy now, pay later” approach, that makes spending even easier. But the big issue is that approach generally leads to longer-lasting holiday debt since buyers likely couldn’t afford those full purchases in the first place. Here are a few dangers of getting into holiday debt.
The Impact Is Felt Almost Immediately
Carrying debt month-to-month is bad enough but carrying it for more than six months can be devastating. That dreaded interest kicks in right away, making sure you will end up paying even more in the long term for holiday purchases that were already too expensive. The impact of holiday credit card debt can be felt immediately, setting the new year on an immediate negative financial track.
This Pushes Other Financial Goals Back
Another danger to having this holiday-related debt is the impact it has on your other financial goals. Having holiday credit card debt likely means further setbacks on other important goals because you just simply can’t put time and effort into them. The debt from gifts could mean that you will pay off student loans later or that it will take more time to save for a new car, home repairs, vacations, and more.
Your Credit Score Can Go Way Down
Another danger is your credit score will likely take a big hit from this debt. A credit score represents your creditworthiness and impacts not just the financial assistance you qualify for, but the types of help you can get. One of the biggest factors in determining a credit score is one’s ability to use credit cards responsibly and regularly pay off debt on time. By going into credit card debt, financial providers will likely be far less inclined to extend more credit when you need it the most.
How To Avoid Holiday Credit Card Debt
Setting a holiday spending budget is likely the most effective way to keep your credit card use in check this season. Outlining anticipated expenses and setting spending goals and restrictions will go a long way in avoiding unnecessary debt. It’s also important to track your debt and outline a payment schedule. While avoiding debt altogether is preferred, it’s also sometimes unrealistic.
If you do get into holiday debt, be sure to make note of your overall debt, where it’s coming from, and the payment due dates. It also helps to be creative with holiday spending. Instead of expensive gifts, consider alternatives such as homemade offerings, secret Santa, or coming to an agreement with friends and family about the number of gifts to exchange and a price limit. Taking time to research certain expenditures can help, too. Instead of spending a lot on a new laptop, wait for the sales.
Take Care Of An Emergency Quickly
Holiday credit card debt doesn’t just occur because of spending on gifts or travel. An emergency such as a home repair or a trip to a hospital’s emergency room can push people further into holiday debt. So, when a financial emergency strikes, a payday loan may help you address such problems quickly and recover with ease. A payday loan from us at Cash Cow helps cover a major expense in between paychecks.
In a minimum of 30 minutes, you can find out if you qualify for a short-term loan of up to $1,400. We make it easy to start the payday loan process as well. Just fill out the short form on our homepage and a representative from the nearest Louisiana payday loan location will give you a call to discuss the required items and next steps to get your payday advance quickly. Those who qualify get the holiday cash they need either the same day or the next business day.
Don’t Let Holiday Credit Card Debt Hurt You
Don’t let holiday credit card debt linger into the next holiday season. Know how your holiday debt has affected you in the past so you can get prepared for it right now. And when an emergency gets in the way, remember that a payday loan from Cash Cow can help you get back on solid financial ground. Fill out the online form on our website right now to get started on our simple process today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.