Holiday Shopping Without Credit Cards
We’re getting into the holiday season, and all of us are tempted to use credit cards more at this time of year. Given the current economy we’re living in, I wanted to share some shopping tips that you may find useful.
Breaking Down the Facts
Nationwide, Americans rely heavily on credit cards. According to Forbes Advisor, credit card debt in the U.S. is at $1.21 trillion, with the average person carrying $6,473 in credit card debt. 
The average interest rate on credit cards is around 21.4%. You may see a reduction in the current interest rate you are charged, based on the Federal Reserve’s recent decision to lower rates by 0.25%. Even so, you may want to think about keeping credit card usage at bay during the holidays.
Shopping Tips for a Stress-Free Holiday
Here are a few tips to navigate holiday season shopping, and hopefully avoid using credit cards.
Make a List: Make a list of everyone you must get presents for, and set a budget for each person. This will help to avoid overspending.
Compare Prices: Watch for sales at your local stores and Internet outlets. Take every opportunity to use coupons and promo codes to keep your expenses down.
Consider Alternative Options: Think about handmade gifts, if you’re crafty. If you have a large family, take a team approach and try a Secret Santa type of gift giving, or a White Elephant game. Either of these ideas work just fine for adults, and it leaves you with a bigger budget to spend on children.
Homeowners with large credit card balances may have the option to take advantage of their built-up equity to pay down stubborn credit card debt. For example, a HELOC allows you to decide how much equity you would like to use. (Typically, up to 80% to 85% of the home’s appraised value.) This money can be used for any purpose, and the interest rate on the loan is much less than what you would pay on credit cards.
Give me a call if you would like to learn more about using home equity, or have any questions about mortgage planning. My team and I are here to help!