How to Avoid Holiday Debt
spending holidays holiday debt

How to Avoid Holiday Debt


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It's that time of the year. There are Christmas trees everywhere and the mood is upbeat (even with a pandemic still hovering around). This also means it's the time for sales. While you might get great deals, it's important for you not to go overboard.


Holiday debt is the term used for the bills you rake up during Holiday Season. There is pressure to spend from peers and get carried away with the festive cheer.  Spend too much and you can spend months repaying the bills.  But there are some steps you can take to avoid getting into holiday debt.

1) Set a budget for holiday spending

This is a time when you're tempted to spend more than usual. While there's nothing wrong with that, it still helps to keep an upper limit. If you have saved some extra money in the last few months, you can dig into that.


2) Break down your budget

There are many things you might want to spend on during the holiday season - travel, electronics, clothes, furniture, etc. It might help if you split your budget. If not, you risk spending a lot of money on a big-ticket purchase and being left with little or nothing to spend on others.


3) Make peace with FOMO

There is a lot on sale and you can't possibly buy everything. This means you will miss out on some great deals. But the good thing is - sales don't happen only during Holiday Season.

If you feel you are overstretching when it comes to your finances, it's okay to say no. Friends planning a trip that's out of your budget? Politely decline. Spot a great offer for a product you might not need? Skip the purchase for now. If you give into FOMO now, you will spend months repaying your debt.

4) Make the most of the cashback you receive

While this is the season for sales, it is also the season for cash backs. You might need to check which brands are giving you great deals on which card. Zolve gives you up to 10% cashback on over 10k+ brands.

These simple steps can help you tide over the holiday season without racking up too much debt.

Happy Holidays!