Top 5 ways for managing debt for the holidays

Planning your expenditures for the holidays is imperative in order to manage the after-the-holiday debt. We all love to buy gifts for everyone on our list, but wanting to give them the best may end up leaving you with empty pockets. Keeping within the budget is sometimes difficult, but not impossible.

To keep yourself from going over your budget, try to remember these ideas while you shop.

1. Carry cash. If possible pay everything in cash and stop when you run out. It is easy to carry a credit card instead of cash mainly for it's convenience. It saves you time from going to the bank and gives an impression of "unlimited" funds. We can only wish the unlimited part was completely true. The problem with using credit cards is that causes you to over spend. Carrying only a set amount of cash will help control overspending. Using cash and stopping when you run out of cash will be surefire way to avoid after-the-holiday debt. 

2. Use a prepaid credit card. A prepaid credit card can be a great way in controlling your spending. Major credit card companies such as: Visa, Mastercard, and American express offer prepaid credit cards. The credit card is basically as good as cash, so when you use it it is not going to carry forward as debt. The same goes for gift cards. Buying gift cards can keep you in control of what you're spending without having to carry cash.

3. Use gift cards. Most times when I get gift cards from family and friends, I save it for next year's Christmas shopping. You can also use them to buy gifts for birthdays or any holidays that come up. That way buying gifts do not have to come out of my pocket. I even used gift cards I received for Christmas for my wedding (6 months after the holidays). They were $100 worth of gift cards for a liquor store. I used them to buy liquor for my wedding and it saved me tons by not paying per head for an open bar.

4. Setup a gift exchange or Kris Kringle. Instead of buying gifts for each family member have everyone agree to a gift exchange. Have your family draw names and set an amount that is affordable for everyone. You can also have each person list the gifts they would like to receive along with their names. This way everyone can save money and will actually like the gifts they received.  

5. Set a budget and stick to it. Sounds cliche? Yes, it does. However, it is the best advise to avoid maxing out credit cards and going over budget after the holidays. Plan how much money you can spend before going shopping and stick to it. Use cash if possible. No ifs, ands or buts about it.

Planning and discipline are keys to successfully manage the after-the-holiday debt. Keeping these tips in mind will give you a worry-free Christmas holiday and enjoy the New Year debt free.