Spending Trapsto avoid this coming

on Holiday seasonBy: www.newhorizon.org

• We all want to make the holiday celebrations

merry and special.

• But it doesn't mean you need to spend and let

yourself stuck in debt for the sake of merriment.

Are you excited for the holidays?

Here's what can you do to

avoid spending traps especially on a holiday season

Chasing after CREDIT

CARD REWARDS1.• People who own reward credit cards are often prone to overspend

during a holiday season.

• THEIR REASON: Charging larger purchases to their credit card will

help them rack up more points and get rewarded sooner. But is this

justifiable?

• BUT IN REALITY: Many reward cardholders incur large charges yet

fail to pay off their balance in full. As a result, they carry over high

balances, get charged with steep interest rates, and struggle with

repayment months after the holidays are over.

TO AVOID THIS:

• You should be more conscious about your spending,

particularly your credit card use.

• Don’t use the holidays as excuse to spend more than

what you can afford.

• Before charging a purchase or a bill to your reward

credit cards, seriously consider if you can pay back

the full balance on time and if the expense is really

worth it.

2.Acquiring a STORE CREDIT

CARD

Retailers and merchants take advantage of the holidays

by offering special discount cards or loyalty cards to

shoppers.

Should you sign up for one?

At first glance, it might be tempting to get a store card

and enjoy a 5% discount from your purchases.

The question is, are you really

aware of the possible risks?

Weigh the pros and cons before signing up for a store credit

card.

• True, store cards may offer exclusive discount rates but what

about the fees?

•How much would you need to pay each month to keep the card

active?

• How much is the penalty fee if you max out your limit?

• Will you be using the card often or will you be using it one

time only?

3.Getting the buy three, take

one deal.

Some shoppers might instantly feel that they’re saving money

with this purchase but before you thrown in the package to

the shopping cart, do you really need to buy that many of

the same item?

You should also check the price and compare it with the unit

price of the product.

When you do the math, you might find that you’re not really

getting a discount at all or you’re only getting a very small

discount.

Furthermore, filling your shopping cart with too

many “buy one, take one” deals may cause you to

spend more than you planned.

Once at the counter, you might realize that you

exceeded your budget and be forced to buy because

you’re embarrassed not to pay for all.

For more information:

http://www.newhorizon.org/credit-info/spending-

traps-to-avoid-on-a-holiday-season/

RESOURCES:

• List of reward credit cards http://www.newhorizon.org/Info/rewardcreditcards.htm

• List of store credit cardshttp://www.newhorizon.org/Info/catalog-credit-cards.htm