How will you pay?
It’s nearly the end of November and the stores are filled with holiday decor and tempting gifts to purchase.Here’s the big question.
How will you shop? With cash? Debit? Credit card?
Studies show that shoppers spend more freely when they use plastic, both debit and credit, because they are not constrained by the bills and coins in their wallet. A credit card, of course, is the most costly way to shop, because unless you pay off your purchases in full within the month, interest accumulates. Using debit gives you instant access to all the cash available in your bank account. It’s incredibly convenient. It’s also very easy to succumb to the allure of that really special gift, and spend over budget. However using debit means you are using your own money. So there’s no debt to repay at the end of the month. Plus your bank statement will show you a complete record of all your spending, so you never have to ask yourself :
“Where did all that money go?”
Cash in hand or debit are hands down the surest ways
to shop within your budget.
Here’s holiday shopping advice from the Goldhar shed the debt professionals:
1. Write down all the people on your gift list.
2. Set a spend amount that feels right for each of them.
3. Add up the total spend and make sure your cashflow can handle it.
4. Surf the internet or stroll through the mall to get an idea of what gifts you can find in your price ranges.
5. Don’t buy as you go. Take the time to plan what’s right and what’s affordable, and then go back to the website or the store and make the purchase.
6. Take cash to the mall so you’re not tempted to go over budget.
7. For online purchases, use debit or paypal if possible. And don’t forget to factor in the cost of shipping.
8. If you must use a credit card, transfer money from your bank account to the card as soon as you make the purchase.
Follow this plan and you’ll be in control of your holiday spending, and enjoy the pleasure of gift-giving without worrying about how to make ends meet the day after Christmas.