Using Credit Cards This Holiday Season
How-To Use Credit Cards for Holiday Shopping
Many financial experts advice consumers to not use credit cards during the holiday season. Instead, they think you should pay upfront for all the holiday presents you buy. On the other hand, there are those who insist that credit cards are the way to go when it comes to holiday shopping. Let’s try to sort through the often conflicting information about whether or not you should use your credit cards this holiday season.
Credit Cards Do Have Their Advantage
There can be many advantages to using your credit cards this holiday season. If you make all your purchases on a credit card that offers a cash back bonus, you will increase the amount of your next cash-back bonus for items that you needed anyway. Who can say no to free money?
You can also enjoy the convenience of using a credit card when out shopping rather than having to take time writing checks or carrying a lot of cash in your wallet. Some department store credit cards have special offers that allow consumers to make purchases now but not pay any interest or make any payments until the New Year. If you want to pay off your Christmas purchases over time without paying interest, there are many credit cards that will let you do it.
The Drawbacks
While there are certainly many advantages to using credit cards during the holiday season, there are some drawbacks that can make the convenience of credit cards not so appealing. During the holiday season, stores get really crowded, and you can get very distracted. You might leave your card behind or place it on the counter to tend to your crying toddler. Either of these scenarios could set the stage for identity theft and isn’t holiday shopping stressful enough without having that to worry about?
Another drawback of using credit cards, especially during the holiday season, is the tendency to overspend. You might have planned to spend $20 on each person this year, but once you decide to use your credit cards, you assume that you can spend more since you don’t need the cash on hand. Don’t make this mistake. Stick with the same budget regardless of whether or not you use credit cards.
You’ll need to make the decision whether or not to use your credit cards on an individual basis. Some consumers feel responsible enough to use their credit cards properly why others do not, but make sure you stick with a budget regardless of whether or not you pay cash or use your credit cards.