Credit Card Obstacle Course: How To Navigate Your Way Through the Holiday Credit Maze

CREDIT CARD OBSTACLE COURSE: HOW TO MAVIGATE YOUR WAY THROUGH MAZE THE HOLIDAY CHEOT Surviving the holidays is a feat - but surviving the holidays debt-free is something to be proud of. During the holiday season, retailers try to squeeze every last penny from our pocket books (and our credit card limits). But if we know what to expect while navigating the holiday shopping obstacle course, we could survive. debt-free! Let's take a look. START: SET, GO! READY, $74.57 on gifts for friends $36.34 on gifts for others GIFT-GIVING GAUNTLET $410.75 on gifts for family $19.06 on gifts for coworkers Challenge: Give a gift to everyone on your massive list of family and friends. In 2010, the average consumer spent on Strategy: You don't have that much money to spend on gifts and purchasing these items on credit is not a smart move. It's time to get creative: make homemade gifts that come from your heart, not your pocketbook. average ---- PAY WITH CASH (OR DEBIT) Challenge: Avoid getting Strategy: Pay for everything in cash. This may seem like a scary alternative to the all-too-convenient plastic in your wallet, but the payoff will be worth it. Keep those credit cards at home and if you fear temptation will get the better of you, freeze them in plastic bags filled with water. By the time the ice thaws, that urge to shop on credit may well have passed. into credit card debt. STORE CARD CAULDRON Challenge: Avoid getting scorched by the vat of retail card toxic sludge. Strategy: Stores will try to lure you into signing up for their branded credit cards by offering you what seem like generous discounts. Fail to pay your bill on time, though, or start carrying a balance, the high interest rates and fees will eliminate that discount in one deadly strike. Signing up for a retail card also means you have opened another line of credit: a negative hit on your credit score, even if temporary. MERCHANDISE DEATH MARCH Challenge: Make it through the mall without buying something you didn't already have on your shopping list. Strategy: As you march through the mall, you will be tempted by shiny gadgets and hip fashions eager to accompany you home. Once your gaze is fixed on that fancy trinket, it's hard to shift it elsewhere. The trick is to keep your head down: concentrate on your list, and on the shelves that hold the items on your list. CASH-ADVANCE CLIFFHANGER Challenge: Hang on for dear life as you ignore your credit card company's cash-advance offers. Strategy: You could use the extra cash to pay your bills this month and have enough to spend on gifts, but chances are the interest rate on this advance is higher than your already outrageous purchase APR, supplemented with outrageous fees. Tighten your belt if you have to – and if that cash is really needed, pay off the balance as quickly as possible. MAXED-OUT MONKEY BARS Challenge: Swing your way across the pit of eternal indebtedness to your credit card company to make it safely to balance $0. Strategy: Follow the do's and don'ts below in order to make it across alive: Do pay off as much of your balance, as quickly as possible, without dipping into your retirement savings. - Don't apply for more credit. - Do return any items that you purchased but never used and won't need. - Don't miss any credit card payments. Depending on the severity of your situation, you might be better off seeking professional financial advice, but don't despair: maxing out your credit cards doesn't necessarily mean you're headed towards bankruptcy. WILLPOWER WALL CLIMB Challenge: Climb over the final wall of holiday spending completely debt-free: Strategy: Maintain your willpower throughout the holidays to successfuly complete the obstacle course. Watch out for those final hours when you're tired and drained from all your previous obstacles. It's at this moment when temptation to put a last-minute item on your credit card is at its strongest. THE HOLDAYS AHE FINALY Did you successfully make your way through the obstacle course debt-free or did you fall prey to one of the many perilous challenges you faced? Whatever your situation, there is always something to learn from your experience that will make next year easier. It's time to take stock of your victories and failures and run full-force into the New Year! SOURCE: NRF.COM, BANKRATE.COM, CREDITCARDS.COM credit sesame www.creditsesame.com