4 Ways Houston First Time Home Buyers Can Avoid Christmas Debt
The Average Holiday Debt in 2021 was $1,249. In doing my research for this article, I found that the National Retail Federation survey shows that this year, holiday shoppers on average plan to spend about $1000 on presents and decoration. This is not really a problem if you do not have to stretch your finances to accommodate the expenditure. However, if you do, you may find your self carrying more debt, which could prevent you from purchasing your new home.
Companies have made it very easy to buy now and pay later, with the likes of Afterpay, Affirm and Klarna. Please keep in mind, that these companies are in business to make money and the more they can get you in debt, the more money they will make.
You and I both know that giving is one of the most fun you can have with money. And treating yourself, family members, and friends is a nice feeling. However, every purchase you make, comes at a cost and a very expensive one if you use credit. So, not to be a Grinch or anything like that, here are 4 ways to avoid getting into debt this Christmas.
Set a price limit for friends, family and everyone in between - instead of spending $2,000 on one item because the person said that is what he/she wants, set a limit of say $50-$100. As long as it is good for your wallet, it will be good for you and should be good for them as well.
There is no harm in looking for discounts - You can find high quality items at TJ maxx and Marshall for a fraction of the retail price.
Beware of pay day loan companies- they may be the most expensive way to borrow money.
Credit Cards -It's best to just say no. When the sales person in the store ask you if you would like to sign up for their credit card and save 10%, just say no, because (a) you will end up spending more than you really wanted to and (b) the only way you will see that 10% you saved is if you paid off the balance in full when the bill arrive in January.
Remember, spending time with family and friends during the holiday season is time well spend. Doing so without going into debt... Priceless. There are truly somethings that money cannot buy. For everything else, set a budget.
On a more yuletide note, while you are out dashing through the stores - we at First Home Houston, don't want a lot for Christmas. In fact, there is just one thing we need; for you and your family to have a very happy, very merry, very healthy and a very safe Christmas holiday.
From all of us to all of you, Merry Christmas. Helping you to make the most informed decisions. Thank you so much for stopping by. Until next time...Diana
Image Created by Diana for First Home Houston
