Many Americans tend to shop more while on vacation, so what should you do to stay on budget and avoid credit card debt?
MACON, GA – The vacation is over, and now it’s time to take stock of the damage. If you’ve shopped and spent more than your budget, don’t worry. We spoke with a financial advisor to help you learn how to manage your credit card debt.
Terri Mullens is a former banker who enjoys shopping.
“I have quite a few credit cards,” Mullens said. “I have a shoebox, but what I do is I never buy more than I can afford.”
Last Christmas, she was busy shopping for two parents, four children and nine grandchildren.
“I just put a price on each kid, and I stick with that, so I put it on the map and when the bill comes in, I pay it,” Mullens said.
Like Mullens, many Americans tend to shop more while on vacation, so what should you do to stay on budget and avoid credit card debt? You should put yourself in a position where you can pay them off every month. That’s according to financial advisor and president of the Rosenberg financial group, Sherri Goss.
“Track your spending for 30 days, see how much money you have to pay it off, then start prioritizing the debt. I would take the debt with the highest interest rate and put it first because you want it. put it aside, pay it off, then take that money and roll it over to the next highest interest rate debt, ”Goss said.
Mullens said: “I had an ex-husband who got me into debt a lot, so I swore I would never find myself in that position again. Basically my philosophy is, ‘Don’t go into debt. “It just isn’t worth it.”
About 1 in 3 U.S. buyers took on more debt during the holidays. According to the Magnify Money website, 44% spent more than their budget.
Goss also says it’s never too early to start saving. This way, you will have enough to spend for the next vacation without going into debt. If you want to track your spending, go to withdrawelax.com and use their spreadsheet.
According to the latest LendingTree survey, 36% of Americans are in debt this holiday season, up from 31% in 2020.
Plus, now is the time to review your credit score. Go to creditscorecard.com to analyze your Fiasco score. Goss says the long-term goal is to “pay off debt and keep your credit rating high.”