Why You Shouldn’t Do Your Holiday Shopping With Your Credit Card

The holiday season is upon us yet again, and this means bringing out all our savings and starting to enjoy what the season has to offer. But wait, what about those with no savings? Thank God for credit cards; they always have the potential to save us in situations such as these. However, the holiday season comes with its pressures, meaning you will be forced to overspend.

From décor to air tickets, this is a time to spend, regardless of whether you have always been a careful spender or not. Moreover, having a stack of credit cards on you might force you to go overboard without even thinking twice. In this case, sticking to hard cash might be the best way out.

Here are some of the reasons we think paying by cash, not credit cards, during the holiday season, might save you a lot. Read on, and let’s find out.

holiday shopping

It Helps You Stick To Your Budget

Most financial advisors always emphasize on having a budget when you go shopping. However, this is not always the case. Without a budget, you cannot follow through a framework as you do your shopping. Having a budget helps you stick to a certain amount, hence saving you a lot of money.

Moreover, if you go shopping with credit cards, you can’t resist the urge to buy items on sale. On the other hand, if you are using cash, you will be forced to stick to your cash budget; this helps you plan accordingly and even save some extra money to use during the season.

You Will Be Able To Track Your Spending

You might argue that using a credit card helps you track your spending since you can log into your account any time and check your transactions. But, the question is, how often do you do that?

Compare this with having hard cash on you; it helps you track down and even budget how much you will be paying on specific days. Consider withdrawing a lump sum during this holiday season for all your purchases; you will thank me later.

You Are Likely Not Getting Into Debt

We all know using a credit card is “borrowing money” and paying it off later. Meaning that if you use a credit card for shopping, you are going into debt, and you will be forced to incur a lot in interest, should you not fully settle your bills.

Getting into debt also damages your credit score, and this is due to racking up debt to drive your utilization. In this case, you are better off paying by cash instead of credit cards.

Bottom Line

There are plenty of reasons why using credit cards is the best option, like earning more rewards and getting price protection on your purchases. However, the critical question is, are you responsible enough to use your credit cards carefully? Can you stick to your budget? Check yourself. Are you an impulse shopper? If yes, then consider leaving your cards behind. But, if you are not, then go ahead and hit the stores with your credit cards.