With the holidays quickly approaching, you may be rushing out to purchase gifts, organize parties, decorate the home and attend the many activities that make the season festive. Since affording this sudden financial burden can be difficult for working families and single parents in Texas and across the country, a number of Americans use their credit cards as a way to purchase their holiday items. Sadly, this is how debt accrues, and you may find it hard to pay off the credit card debt that accumulates as a result of these extravagant purchases. Here are some things that you may want to keep in mind when using your credit card this season.
According to US News, shoppers should avoid careless spending on items that are not in the budget. It often helps to sit down and organize a plan before haphazardly purchasing items. Also, you should think twice before filling out an application for a department store credit card. Some stores may offer a decreased percentage rate or money off of a first-time purchase if you apply for a credit card. However, these cards may induce you to purchase more than you would normally buy if you were to pay cash. Furthermore, you may continue to use these cards all year, rather than just for the holidays.
Keep in mind that your credit card activity affects your credit score. If you fail to make regular payments or pay off your accumulated debt, you could negatively affect your score. If you are able to pay off the balance of your card each month, then making charges can actually increase your credit score. You may also enjoy free rewards on your purchases.
This information is intended to educate and should not be taken as legal advice.