A quarter of Americans predict they will be in debt after Christmas, according to survey by Coupon Cabin. The site, which provides coupons for thousands of retailers, adds that a third of the survey’s 2,000 respondents say they are worried about their spending this holiday season.
While this survey is certainly discouraging, we can’t say we blame them. There is so much pressure during the holidays to buy gifts your loved ones will cherish and brag about on Instagram. CouponCabin found that the average amount spent on presents last year was about $830 per household, but that number can quickly jump, especially if you have family visiting from out of town. The truth is, no one wants to be a cheapskate at Christmas. At the same time, it’s completely unnecessary to start a new year with preventable debt. As we embark on the busy holiday shopping season, here are some tips to keep your spending under control.
Stick to cash
According to Coupon Cabin, a quarter of respondents say they rely on credit cards to cover holiday gifts. If you can pay the full balance on your credit card statement when it arrives, then this works. But if you start charging purchases you can’t pay off, you’ll be in over your head faster than you can count down the 12 days of Christmas. To prevent yourself from overspending, make a budget for gifts that matches up with the money you actually have in your bank account. Using a credit card might be easier, but making purchases with cash will keep you honest and debt-free.
Use layaway
Payday doesn’t always roll around when you need it to. Luckily, many large retailers have affordable and convenient layaway plans that can help you buy amazing gifts and pay them off by Christmas.
For Walmart’s (WMT) layaway program there is no setup fee, but customers do have to put down $10 or a 10% down payment. Layaway is available for electronics, toys, small appliances, sporting goods and even jewelry, but your purchase must be at least $50. Walmart’s holiday layaway period ends Dec. 12, so you have plenty of time to pay off your purchases and get them wrapped and under the tree for Christmas morning.
Other retailers, including K-Mart, Sears, Toys “R” Us, Babies “R” Us, Burlington Coat Factory, Marshalls, and T.J. Maxx, all have layaway plans. Most require a small deposit – around 10% of your total purchase amount – and customers can make payments every two weeks. And almost all programs charge a cancellation fee of $10-$25 if you bail out of your payment plan.
Search for sales
There’s always a crazy amount of hoopla around Black Friday, but it’s often for good reason: You can score some amazing deals. The key is to not get sucked into the hype – don’t just buy a whole bunch of junk you don’t want or need just because the price is right. Take time to read the circulars before you head to the stores, so you can pinpoint what you want and go in with a plan. If dodging crowds of desperate shoppers fighting over-flat screen TV’s gives you anxiety, then be sure to take advantage of Cyber Monday – Nov. 28, the Monday after Thanksgiving – when thousands of retailers promote special discounts and deals online.
About half of the respondents in Coupon Cabin’s survey say they plan to shop during these sale events, but what’s more interesting is that 10% said they’ll wait until the New Year to make large purchases. January is traditionally when many retailers try to clear out inventory, so it’s a great time to snag clothes and electronics at a deep discount. Sure, you might miss out of the Christmas Day gift exchange, but the money you save will soften the blow.
Give the gift of time
The true spirit of Christmas is about family and togetherness (don’t roll your eyes), so if you’re strapped for cash, focus on other ways you can make the day special. Buy baking supplies and spend the morning making and decorating sugar cookies, fill up stockings with an assortment of fun and affordable treats, bring out a deck of cards and teach the kids your favorite game, make a viral video to Christmas music, or go for a long walk as a family. Everyone likes to get flashy presents under the tree, but the feeling we get from spending quality time with loved ones is the real gift.
Brittany is a writer at Yahoo Finance.
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