How to Avoid Holiday Credit Card Debt?
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How to Avoid Holiday Credit Card 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 crucial 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 credit card bills. But there are some steps you can take to avoid getting into holiday debt.

1) Set a credit card budget for holiday spending

This is a time when you're tempted to spend more than usual. While there's nothing wrong with splurging on yourself once in a while, it always helps plan a budget or save beforehand. If you have saved some extra money in the last few months, you can dig into that.


2) Break down your credit card budget

You might want to spend on many things 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 the holiday season.

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

4) Make the most of the credit card cashback you receive

While this is the season for sales, it is also the season for cashbacks. Zolve offers you up to 10% cashback on over 10k+ brands. You might need to check which brands give you great deals on which credit card. You can also check which US credit card is best for students.

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

Happy Holidays!