3 Things You Can Do Now to Avoid Holiday Debt | First Volunteer Bank

It’s the most wonderful time of the year! That is…until you let your holiday giving turn into holiday debt.

It happens every year. People have the best of intentions and want to give to loved ones—only to see their holiday giving turn into debt for the new year.

Therefore, start making a plan now in order to avoid holiday debt later this year:

Set a Budget

Take a look at your current budget. If you do not have a household budget, now is the time to establish one for a better financial health.

Do you have room in your current budget for holiday spending? If so, go ahead and determine the amount you’re able to spend on things related to the holidays, including gifts, decorations, greeting cards and even food for holiday parties.

If you don’t have the holidays included in your budget, see where you might be able to cut back to add holiday spending in.

For example, do you eat out most days of the week? Do you go to the movies every other weekend? Stop some of your spending on your extras in order to make room for a holiday budget. That way you are not taking away from your monthly bills—and you’re not going over your budget and creating debt.

Be Creative

Who says everyone’s present has to be purchased at a store?

Why not give them something they wouldn’t expect, such as free babysitting to the member of your family who just had a baby? Or the gift of housecleaning to an elderly loved one who might not be able to move around as well as he or she once did?

Giving the gift of time to loved ones is one of the most precious and unexpected gifts there is in life. Plus, it won’t cost you a dime.

Keep Track of Your Spending

You want to keep track of every holiday purchase you make to ensure you are staying on track with your budget. If you start to see your budget is about to run out, you need to slow down.

Once you reach your spending limit, stop. Remember, your loved ones would not want you to go into debt to buy them a gift.

Get ahead of holiday spending in 2019 by starting a First Volunteer Bank Holiday Savings Account today!