December 6th, 2009 
admin 
‘Tis the holiday season, a time when our cares are likely to shift from the state of our pocketbook to the contents of our plate or glass. It is a joyful, yet dangerous time for many folks who are struggling with credit card and other forms of debt. Unfortunately, the turn of the calendar to the new year does not wipe clean our debt and re-start the clock – but what a great thing that would be if it was true!
According to the National Retail Federation, the 2009 holiday season will result in an average expenditure of $682 for each American consumer on items such as food, gifts and decorations. Using credit cards for these expenditures always seem to be an easy way to pay at a later date, but is not always the best choice for everyone. Add to the mix the temptation of signing up for a new department or specialty store credit card, in exchange for an extra 10-15% off your purchase “that day” – who could resist that?
The answer is, unless you are a truly conscientious credit card user who never carries a balance, you should probably pass on the deal. Why? Buyer beware; even though the department store cards offer first time purchase perks, they can come with higher interest rates than other credit cards. If you are not able to pay cash or debit but feel as though you can pay off most or all of your holiday purchases within a short period of time, pick the credit card with the lowest APR and most available credit to charge your purchase.
Yes, Christmas is for caring – but not only for others, for your ensuring your own credit card debt does not get further out of control. Even though the credit card sign-up incentives offered by harried store clerks dressed like Santa’s elves are tempting, they are designed to get you when you are in your most vulnerable state, are distracted by the holidays, and likely to be very busy (and impulsive). Do yourself a favor if you are not in a position to pay it off immediately and “just say no”. Chances are, you’ll be glad you did come the New Year!
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Tags: Holiday Season, Season