28% Still Owe 2023 Holiday Debt! Tips to Avoid It in 2024
📝 Save money and spend wisely this holiday season!
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📰 Interesting financial news: Stay up to date on what’s happening in the economy.
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🥰 Team CGF’s Amazon favs: Affordable yet helpful Amazon finds.
📰 Interesting financial news
What You Should Know About “No Spend November”. (Huffington Post)
Student loan servicers are pulling incorrect payments from borrowers' bank accounts. (NBC News)
How to optimize your holiday travel budget on “Travel Tuesday”. (CNBC)
📈 What’s popping in the stock market
Nvidia earnings, forecasts top expectations as "age of AI is in full steam”. (Ticker Symbol: NVDA)
Target sounds the alarm bell on holiday shopping; expecting weak shopping season. (Ticker Symbol: TGT)
📝 Main topic: Avoiding credit card debt this holiday season - it’s possible!
The holidays are approaching, and gift buying will be in full swing. Yet some people are still recovering from last year's extravagant shopping. According to a report by NerdWallet, 28% of shoppers haven’t paid off their credit card debt from last year’s holiday spending.
Additionally, a NerdWallet analysis showed that Americans are planning to spend about $17 billion more on gifts than last year, and 75% of shoppers will most likely use their credit cards.
While credit cards can make shopping more convenient, unpaid balances can contribute to financial hardships and damage one's credit score.
So, how did you fulfill your holiday obligations without relying on swiping? We have some holiday finance tips to help you save money and avoid debt.
5 Ways to avoid racking up credit card debt this holiday season
You’re a part of the Clever Girl Finance community, and you know that being financially savvy takes preparation. Here’s how you can prepare your finances for the holiday season:
1. Focus on paying off your balance
While making minimum payments on your credit card bill is important, focusing on paying off your debt or lowering it as much as possible will give you more spending flexibility.
Here’s how to start paying off your balance instead of frequently swiping.
Pause credit card use
Consider pausing any use of your credit cards until the debt is paid off or at a more manageable amount. If you’re trying to pay off debt while still using your credit card, you’ll eventually feel like a hamster running on a wheel.
Using cash or a debit card, freezing your credit cards, or simply keeping your credit card at home can reduce your chances of increasing your debt.
Remember, pausing credit card use also involves not using Buy Now Pay Later programs. Even though you’re not using your credit card, you still accrue debt, which you will eventually have to repay.
Put any extra money towards your debt
The holidays tend to be a time when extra money comes in. This can look like getting a Christmas bonus, working overtime, or getting more work from a side hustle. Whatever extra money you have coming in, decide to put that money towards paying off your debt.
If you’re not expecting any extra money, there are ample opportunities to make some extra cash. Consider some of these holiday side hustles.
Gift-wrapping services for friends, family, or people in your community
Holiday decoration services for homes and offices
Babysitting, dog walking, or pet sitting
Renting out holiday items such as decorations, costumes, etc
Sign up to be a driver for taxi or delivery services such as Uber, Lyft, or Amazon Flex
Offer tutoring services for students who have end-of-the-year exams
Holiday photography
Seasonal retail jobs
Remember that everyone is busy during this time, so offering a service that makes someone’s life easier could be a great way to earn extra money.
Contact your credit card company
The idea of talking to your credit card company might seem overwhelming and uncomfortable. Why would you want to talk to the people you owe money to?
However, most credit card companies have options for helping you pay off your debt.
Having a conversation with your credit card company about receiving a lower interest rate or setting yourself up on a payment plan can help you pay off your credit card debt faster.
Some credit card companies may be able to lower your rate temporarily, and others may be willing to lower it until the debt is paid off.
Do a balance transfer (Only if you’ll save on interest)
If your credit card company isn’t willing to offer you a lower interest rate, you can transfer your balance to another credit card with a lower rate or take out a loan to pay off the debt.
Before transferring your debt, make sure you read all the fine-print involved. Many credit cards only offer a lower interest rate for a promotional period. Also, look for any additional fees that may be involved.
Consider all the possible outcomes and choose what is suitable for you.
2. Create a holiday budget
Like your regular budget, having a holiday budget will help you decide where your money will go. A holiday budget can look like the following:
$300 for holiday gifts
$100 for holiday meals
$75 for decorations
$200 travel
$150 holiday activities
You can create price ranges if you’re unsure how much you’ll spend on certain items. For example, your budget for decorations could be between $75 and $100. This way, you give yourself spending room if items are more expensive than expected.
With a budget, you can have more control over your spending and are less likely to overspend.
3. Stick to using cash or debit cards
While using credit cards has advantages, relying on cash and debit cards can help you stay within budget. After all, you can’t spend what you don’t have.
If you stick to cash, using the envelope method can help manage your money.
4. Strategize your shopping
Now is the season when stores have their annual sales, end-of-year deals, and other special offers. Therefore, if you shop strategically, you can find the best deals.
Compare prices
If you have a gift item in mind, make sure you compare the prices before settling for the first price you see.
Shop online
Shopping online instead of in stores often yields better deals. Additionally, many retailers offer discounts if you sign up for their newsletters.
Use discount apps
Another great way to find discounts is to download the app for your favorite retailer or apps, such as:
Rakuten: Great for earning cashback on everyday purchases from major retailers online and in-store
Keepa: Best for Amazon deals
Honey: A web browser extension for online discounts
Fetch: Allows you to scan receipts to get cashback
Ibotta: Alerts you when there are deals nearby
5. Focus on gifting less expensive or handmade gifts
A gift doesn’t have to be expensive to be meaningful. Shopping for practical and economical gifts is an excellent option for saving money. Some gifts to consider include:
Gourmet chocolates and sweets
Candles
Wine
Towels
Experiences such as wine tasting, horseback riding, or a spa day
A journal
Some of the most memorable gifts are made instead of bought. So consider making your gifts this holiday season to help you save money. What are some quality handmade gifts?
Some ideas include:
Baked goods such as cookies, breads, cakes
Knitted or crocheted items
Photo albums or photo books
Handmade jewelry
Keep in mind that if you can’t afford to give gifts this year, that’s ok too.
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Falling into credit debt is a slippery slope. However, by making financial decisions that align with your goals, you can come out of this holiday season within budget and save money.
If paying off debt is one of your 2025 goals, check out our free course on creating a debt pay off strategy and eliminating it for good!
🥰 Team CGF’s Amazon Favs
We’re here to make your holiday shopping a little bit easier. Here are some great holiday gifts that won’t cost you an arm and a leg.
P.S. If you make a purchase we may earn a commission, this helps us grow!
Clever Girl Finance My Wealth Plan Workbook: Your Personalized Plan to Ditch Debt, Save Money, and Build Real Wealth
Gifting the Clever Girl Finance Workbook: My Wealth Plan, is a thoughtful way to show you care. It’s the ultimate financial toolkit to help you outline and achieve your financial goals, organize your financial records, and build an iron-clad budget that helps you pay off debt and build wealth.
You can even use it alongside the Clever Girl Finance book series or on its own.
This workbook will give you practical support for managing your finances and the motivation you need when you become overwhelmed with financial responsibilities.
Gift this workbook to help your loved one build a solid financial future!
12 Pack Scented Candle Gift Set
Everyone has that one friend who is all about home decor. Think for a moment. Who is that person who is always talking about redecorating, bragging about their new wine glasses, and is always hosting?
This 12 Pack Scented Candle Gift Set would be perfect for anyone who comes to mind. With 12 different scents, such as Campfire Marshmallow, Apple Cinnamon, Sandalwood, Orange Ginger, and more, they’ll be delighted to have so many options.
The candles are made from plant essential oil and 100% natural soy wax, which helps them burn for over 20 hours.
A simple yet memorable gift that will help you stay within your budget!
HOWAY Coffee Warmer & Mug Set
One thing that never fails when I’m enjoying a nice warm cup of tea is it always gets cold before I finish it.
Whether you’re a tea or coffee drinker, you know that flavors are more robust when your beverage is warm. Once it gets cold, it’s the equivalent of drinking flat soda.
What if you could keep your coffee or tea warm until the very last sip? And no, I’m not talking about reheating your beverage in the microwave.
The Howay coffee warmer and mug will heat your beverage, so you never have to drink cold coffee again. The heating technology has two temperature settings. The warm setting to heat until 104℉/40℃ so you won’t burn your tongue, or the hot setting of 140℉/60℃ in case you want your drinks piping hot.
This is a perfect gift for busy moms who care for their kids between their morning coffee or your co-worker who often lets their coffee get cold while working.
Remerry 4 Pcs Nylon Cosmetic Bag Travel Organizer
If you have someone who loves to travel, you may think the perfect gift for them is flight miles or a free hotel stay. While those perks are nice, most travelers want things to make their journeys easier.
That’s why these 4 Pcs Nylon Cosmetics Travel Organizers are a practical gift for the traveler in your life.
As an avid traveler, one thing that frustrates me is packing all my small items, such as my skincare products, hair products, makeup, etc. I often try to stuff everything into one or two cosmetic bags, and then I end up digging through my bag of 20 different products just to find my chapstick. Having individually labeled bags makes packing and retrieving items much simpler.
These bags are an excellent gift or make great stocking stuffers.
I Know Collection Affirmation Cards (40 Cards)
The Dreamer’s Deck affirmation cards by I Know Collection are a team CGF favorite because they beautifully blend mindfulness with motivation. These cards are designed to nurture self-confidence and positivity, helping you break free from limiting beliefs and empowering you to pursue your goals with courage and focus.
With 40 unique affirmations, the deck serves as a daily reminder that your dreams are within reach and encourages you to harness the power of your mind to manifest success and positivity.
Beyond their inspiring content, these affirmation cards are a visual delight. Featuring elegant, abstract designs and crafted for durability, they’re a joy to use and display. Whether as a personal mindfulness tool or a thoughtful gift, these cards makes it easy to share positivity and encouragement with loved ones, creating moments of joy and inspiration that resonate deeply.