Bad Money Habits To Ditch This December

The holiday season is upon us and with it comes the temptation to overspend and we can find ourselves having too much bad debt and cannot see a way out, but there is a way out.  Here at Zero Debt we are committed to helping individuals to find financial freedom again. Through debt counselling, debt consolidation or debt review, you can restore your financial situation and become free of bad debt.

With that in mind, let’s look at some bad spending habits to avoid this holiday season.

Spending Without A Budget

Spending without a budget during the holiday season is a recipe for disaster. When you don’t have a budget, you are much more likely to overspend on gifts, outings and other holiday expenses. 

Buying Gifts Without A List

Don’t go to the mall and aimlessly wonder around buying gifts without a plan. Before you go gift shopping, make sure you have a carefully curated list of who you’re going to buy gifts for and, ideally, ascertain the cost of each gift before you go. This should align with your gift budget.

Waiting Until The Last Minute

The sooner you can go gift shopping, the better. Early shoppers can sometimes avoid the price increases that many retailers implement closer to Christmas Day. You also give yourself breathing room to plan, think things through carefully, and not rush into buying impulsively. Plan your holiday spending well ahead of time to avoid winging it.

Keep An Eye On The Extras costs over the Festive Season

Gift purchases are only one of the many things that drain your pockets during the holiday season. Stocking stuffers, outings, and food are also deadly to your budget if you’re not careful. During this time, you’ll have plenty of opportunities to eat out, visit markets, go to the movies, get takeout, and buy some treats to snack on at home. Be mindful that these expenditures don’t get out of hand.

Abusing Credit

You want to spoil your loved ones by buying them nice things and treating them to a few special outings. Your heart is in the right place, but it’s not worth the trouble or the cost if this giving heart leads you into bad debt. If you find yourself applying for store credit, pulling out your credit card, or going into an overdraft to pay for things, you’re in trouble. Sticking to a strict budget can help you avoid this.

Don’t let bad debt ruin your holiday season, contact us at Zero Debt to get expert debt counselling, debt review and debt consolidation. We will help you find your way to financial freedom.

FAQs and Answers

1. What is the importance of budgeting during the holiday season?
   Budgeting during the holiday season is essential to avoid overspending on gifts, outings, and other festive expenses. A well-planned budget helps you manage your money effectively and ensures you don’t fall into bad debt.
2. How can I avoid overspending on gifts this December?
   To avoid overspending on gifts, create a list of recipients and pre-define the cost of each gift. This will keep your expenses in line with your budget and prevent impulsive purchases.
3. Why should I avoid last-minute holiday shopping?
   Last-minute holiday shopping often leads to rushed and impulsive purchases. Shopping early allows you to avoid price hikes and gives you more time to plan and choose gifts carefully.
4. What are the hidden costs to watch out for during the festive season?
   Apart from gifts, hidden costs like stocking stuffers, outings, dining out, and snacks can drain your budget. Being mindful of these expenditures ensures you stay financially secure.
5. How does debt counselling help manage holiday debt?
   Debt counselling helps you assess your financial situation and provides professional guidance on managing holiday debt. It assists in creating repayment plans and offers solutions like debt review and consolidation.
6. What is debt consolidation, and how can it help during the festive season?
   Debt consolidation combines multiple debts into a single, manageable payment, often at a lower interest rate. It simplifies your financial obligations and helps free up funds during the festive season.
7. Why is relying on credit cards during the holidays risky?
   Using credit cards or applying for store credit to pay for holiday expenses can lead to high-interest debt. Avoiding credit misuse and sticking to a budget helps maintain financial stability.
8. How can Zero Debt help me achieve financial freedom?
   Zero Debt provides debt counselling, debt consolidation, and debt review services to help you manage your finances, protect your assets, and reduce your monthly debt repayments. Contact us for personalised assistance.