Buying Something Not in Your Budget
It happens to all of us. You’re in the store to purchase a gift for a friend. You see something that catches your eye and throw it in your cart. While impulse shopping is fun, it quickly adds an unplanned expense to your credit card. Go back to the basics of personal finance. If you didn’t budget for the purchase, don’t put it on your credit card.
This doesn’t mean you need to be a Scrooge. But planning your purchases is the best thing you can do for your credit card. If you didn’t set aside money throughout the year for holiday shopping, you’ll further intensify the damage caused by unplanned purchases.
Overusing Store Cards
Retailers love to promise 10% off a purchase or a free gift if you put a purchase on their store card. You may even see more of this come the holiday season. And keep in mind that these aren’t loyalty cards but actual credit cards for that specific store.
Store cards can be rife with high interest rates, making it worse if you don’t budget for purchases. It’s usually best to politely decline the offer and use your standard credit card or another payment method. If you’re prudent with your purchases and use a rewards card, you can benefit far more than using a new store card.
Not Using Discounts Your Credit Card Offers
Store cards often promise special discounts or deals to entice you to spend more, but you may be overlooking similar or better deals available through your current credit card.
Log in to your credit card account to identify potential savings opportunities. They can range from a percentage off purchases at popular retailers to cash back on a purchase. Not using them may needlessly overextend your shopping budget. Just remember the discount is valuable only if you were already planning on purchasing something at the store.
Saving Your Credit Card Information on Your Internet Browser
Saving your credit card information on your browser is an easy way to save time on purchases. That convenience cuts both ways, though. It can also lead to overspending, especially during periods when you’re shopping more than you normally do, such as during the holidays.
There’s a mental piece to spending. It hurts to part with money; the same can be said when shopping online. If you have your credit card information stored, go into your settings and remove it. Doing so adds one extra, albeit small, hurdle to making purchases. It gives you one more opportunity to think through the purchase and whether it’s one you want to put on your credit card.
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Shopping for friends and family for the holidays can be rewarding. It can also get you into trouble. Plan ahead and follow these strategies to ensure your holiday giving does not turn into New Year’s regret.