Debt is an easy trap to get into and a very difficult one to end, but you can end Christmas debt forever, it is possible to break that cycle of debt!
It isn’t easy especially at this time of year, sometimes it does feel that you are being mean or thinking what does it hurt to spend on credit?
In reality, it’s a trap; one that all credit companies are hoping you will fall into and not have the money to pay it off in one go, so you don’t avoid their interest payments.
Shops and advertising play an important role in encouraging spending more than we can afford. They tempt us to spend more and the credit companies allow for this spending by offering so much credit!
However, it is possible to escape and avoid the Christmas debt forever.
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The Christmas Debt Trap
With adverts of fantastic products that we all must have and the credit companies that are trying to give you the money to buy these goods. No wonder there is so much debt!
It is so tempting to spend this ‘free’ money, but in reality, it will cost you heavily when the bills come in, with interest added on to the goods you purchased.
This burden can last a long time, especially if you only pay the minimum, meaning you have no money for next Christmas so you start again, buying on credit and never getting away from that Christmas debt trap.
Adjust Your Spending
Ending the Christmas debt trap is hard, it means that you don’t spend any money on credit, you only have to spend what cash you have budgeted for Christmas.
If you have already spent on credit this year, stop now!
Ideally, you should start putting money away for Christmas, in January!
Don’t Be Tempted To Spend More
It is hard! I have walked round supermarkets and witnessed people’s trolleys overflowing with food and other items and I stand there and think would it really matter if I put it on credit just once!
That thought scares me more, just think how much more I would have to pay for those goods on credit, especially if I didn’t have the money when I needed to pay the bill!
By purchasing goods that I only have the money for, means that I am not wasting my hard-earned money! I am not going to give it to any credit company.
I want the money I work hard for, to pay for the things I want; this might mean saving up and going without but in the long-run, I am happier as I have access to more of my money each month!
You Must Stop Spending On Credit
You must stop spending on credit now!
Especially, if you want to avoid the Christmas debt trap forever.
It’s hard; you can feel nervous that you don’t have enough money for everything on your wish list.
However, this doesn’t matter, you make the choices for what you do have money for and then you spend the time thankful for those items you can buy.
Yes, you will need to talk to your children; you’ll have to talk to family members, especially if you normally buy expensive presents.
They might be thankful that you have said something and wanted to bring up the subject but didn’t know how.
It is hard, not just that first year, but every year, but it is about staying strong and avoiding spending on credit. If you want more money then you have to look at ways to increase your income, rather than spending money that you haven’t earned.
Create A Budget
It is so important that you live within your means and to do this you must create a budget, you must know how much money you have each month and how much you need for bills.
Without this information, you can’t understand your finances and you will find yourself spending more money than you intended.
Creating a budget is simple, sticking to it is hard!
You need to create a plan for your money, the money coming in and the money that you have going out paying bills. You need to have money left over that you can save towards other bills and expenses!
A great author Dave Ramsey’s writes books on budgeting and getting your money under control!
Don’t Live A Dream Live In The Real World
If you live in a dream world where you don’t worry about the money you spend and you live on credit, this isn’t living, it isn’t even surviving because it will creep up on you!
It would be nice to spend limitless amounts of money but in reality, this is just setting yourself up for enormous debt and possibly one where you never see the light at the end of the tunnel.
What is your best tip for saving money at Christmas? Comment below!
However, there is hope, it is possible to buy all that you need without putting this money on credit; after all, Christmas is about making memories with those people around you and having fun.
Looking for articles on budgeting? It’s Easy To Make A Budget is a great place to start!