There are less than 60 days left to get your holiday
shopping done, and a new report shows many Americans are willing to do whatever
it takes to increase the number of gifts under their trees this year. In fact,
according to a new report from Trustpilot, two in five Americans are willing to
spend less on food and gas now to have money for holiday gifts and a report
from Yahoo! Finance claims people are planning on increasing their spending by
40 percent this year. Perhaps there are more names on the nice list than the
naughty list, but inflation also factors into the increase in spending.
Regardless, planning ahead for holiday spending can still be
an option if you start to bookmark your wish list now and do a little homework.
Obviously, you need to monitor the prices of items you plan
to buy. Some apps and websites, like Google Shopping, offer price comparisons
along with a price-tracking option. It's also a good idea to pay attention to
shipping costs and take advantage of free shipping when you can. There is even
a free shipping day where almost all online retailers waive charges; this year
it is Thursday, December 14.
While 1 in 3 Americans are willing to rack up credit card
debt to buy gifts, there are other options, such as using programs like Affirm,
Klarna and Zip, that allow you to buy now and pay later at major retailers like
Target, Walmart and even Dollar General.
Ultimately, it might prove smarter for you to secure a
personal loan in order to avoid credit card debt. This also can be an excellent
way to pay off that credit card debt that is still lingering from last
holiday season. With a personal loan, lenders provide a lump sum amount that
you repay over time, typically with fixed payments that remain the same. A
personal loan will have a fixed term as well, usually of two to five years, but
sometimes more. Personal loans can help you avoid increasing your debt because
they do not offer ongoing access to funds like a credit card does. Typically,
personal loans have a lower interest rate than credit cards, costing you far
less over time. And while everyone likes a gift that keeps on giving, credit
card debt is not something you want to keep accumulating. Interest and fees can
add up and create a cycle of debt if balances are not paid up. Personal loans
require you to make regular, predictable payments, helping you to stay on
track.
Whatever your plans for the holiday season, staying focused
on your spending and having a plan will be crucial to not getting carried away
with the spirit of giving, landing you in a heap of financial despair at the
start of the new year.
