Denton County Living Well Magazine November/December 2018 | Page 16

YOU DO NOT HAVE TO GO INTO
DEBT THIS HOLIDAY SEASON
By Glen McKenzie
F
or many North Texans and people all across the
nation, the holiday season brings days filled with
good food, family gatherings, twinkling lights, joy-
ous greetings, and, unfortunately, holiday debt.
Memories of the holiday season also evoke the craze of
Black Friday. We are all searching for that terrific “deal.”
According to cnbc.com, spending during the 2017 holiday
season resulted in the average consumer amassing $1,054
of holiday credit card debt. More staggering is the fact that
Americans ended 2017 with $91.6 million of new credit
card debt, according to marketwatch.com.
I do not believe that most people intentionally go into debt
for the holidays. Therefore, I wanted to share a few steps
that you can take to minimize any potential holiday debt in
your household.
Plan Ahead by Creating a Budget:
While it is a little late to implement this year, I recommend
creating a budget a year in advance. Start with a list of
everyone you intend to purchase gifts for with a specif-
ic budget for each. Do not forget to include decorations
and all holiday related items that you might purchase for
the season. The $1,054 average debt from 2017 would
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DENTON COUNTY Living Well Magazine | NOVEMBER/DECEMBER 2018
be about $88 a month, if spread out across 12 months.
Try saving that each month for the following year’s holiday
shopping. It simply takes a little financial discipline. Just
think of how proud you will be in having created a budget,
implemented it, and ended the season with no holiday debt
hanging over your head.
Track How Much You Spend:
Since the holidays are right around the corner, you still have
time to commit to a plan. Make sure that you write down
your plan and track each holiday purchase you make. In-
clude the actual amount you paid for each gift compared to
what you budgeted. Remember, as it gets closer to Christ-
mas, prices frequently drop. If a price goes lower than what
you paid, you may be able to get the difference with your
price protection feature on your credit card. To help you
stay on track, you may even consider setting up a notifica-
tion with your financial institution to alert you anytime you
spend over a certain amount. This will help you maintain
focus and help identify fraudulent transactions. Sadly, we
often see fraud more during the holidays.
Be Rewarded for Your Purchases:
A tip to get the most bang for your buck would be to put
your purchases on a rewards credit card and pay it off
when your bill arrives. If you are going to use plastic this
season, think about using a rewards card (with cash back