Debt Reduction Advice | Debt Reduction Advice

If you have the post-holiday blues, the reason might be your credit cards. If you’re like many consumers, you overloaded your credit cards this holiday season to buy gifts for friends, family members and co-workers. Now the bills have come due, and you’re shocked to see exactly what you spent. You might not even remember the gifts you bought, but you’ll surely remember your new credit-card bill. According to Consumer Reports, shoppers had hoped to put only $636 on their credit cards for gifts, but instead added $816 to their cards. That’s an increase of 28 percent from planned purchases to actual ones. If you’re struggling to pay off your holiday spending, there are steps you can take to prevent abusing your credit cards the next time December rolls around.

Build a Holiday Fund

The holidays are 11 months away. That should give you plenty of time to sock away some cash for your next round of holiday shopping. Ask your bank about a traditional holiday account. You’ll be able to deposit your extra dollars in this account, earn some interest and then have cash available when the holiday season returns. This way, you won’t have to rely on your credit cards to get that last-minute gift for your uncle’s new girlfriend or the new postal carrier on the block. Just remember to keep investing any extra dollars you have. And don’t dip into that holiday fund until the first glowing Santa appears on a neighbor’s front lawn.

Cut Down On Your Spending

Does your 40-year-old brother really need a holiday present from you? Do you have to buy lottery cards for everyone you work with? There comes a point when holiday spending becomes excessive. Talk to your relatives and friends. You might be surprised to discover that many of them would prefer not to exchange holiday gifts this year. In a weak economy, most consumers would rather focus their holiday spending on their own children and spouses. The holidays aren’t supposed to be about mass consumption. They’re supposed to be about spending time with loved ones. That doesn’t require big credit-card purchases.

Get Creative

Instead of buying expensive gifts that you have to put on your credit cards, get creative this year. Sew a scarf for your mail carrier instead of buying $10 worth of lottery tickets. Send photos to your cousins three states over instead of books or CDs. By expanding some creative energy, you’ll take out your credit cards less frequently this December. And that’s something you’ll appreciate come January.