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Local Bank Offers Tips For Controlling Holiday Credit Card Debt
TOMS RIVER - Many people find it difficult to find the extra cash they need for holiday expenses. They use their credit cards, planning to pay off the balances quickly but then find themselves with credit card debt months or even years later.
Mark Tasy, first senior vice president and chief sales officer of OceanFirst Bank, says, "It's not a good idea to incur credit card debt for holiday gift buying. Most people don't plan to run up high balances on their credit cards but it happens. Using credit cards can lead to impulse spending, overspending and increased credit card debt. Often it becomes hard to pay off the credit cards after the holidays."
Here are six tips to help control credit card debt during the holidays:
Make a List - Think about how much you can afford and make a written plan for holiday spending and gift giving. Don't forget to include special gifts, decorations, holiday meals and travel expenses. Use your creativity and consider homemade gifts and home baked goods.
Set Spending Limits - Decide how much you can spend on each person as well as the other anticipated expenses. Shop for bargains. Talk to family and friends about setting dollar limits on the gifts you exchange.
Decide on One Credit Card - It is easier to control your spending if you use only one credit card. Leave your other credit cards at home so you won't be tempted to use them.
Stay Within Your Limits - Write down your spending limit and keep it with your credit card. After each purchase, deduct the amount from your limit. When you reach zero, stop using the credit card.
Make Timely Payments and Don't Skip Payments - When the holidays are over, some credit card companies may offer to let you skip a payment or reduce your minimum payment. Don't be tempted to do either. You will pay more in the long run.
Check Your Credit Report - Pay attention to what is on your credit report and resolve any discrepancies as they come up. The more accurate your credit report, the better off you are.
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