Category: Credit Cards

Credit Cards

Should you Put Christmas on a Credit Card?

When you have an expensive occasion, such as Christmas coming up, it can be tempting to think that the best way is to pay for everything on a credit card and then pay it back later. This can allow you to be able to afford things more easily so that you can buy more gifts and spend more on each person. It can feel really good knowing that you can buy lots of things and make lots of people happy giving them all sorts of gifts. Many people feel that Christmas is about giving the best gifts so that you can make other people happy. However, most people would not want you to be stressed or get into debt just so that they can have a gift.

However, paying for things on a credit card is not always a very good idea. This is because of the cost of the credit card. If you pay off the full balance when it is due, then it should not cost you anything. This means that you can delay paying for items until the bill arrives which could mean that you get paid again and have enough money to cover the cost. This is a great way to help you to afford things and means that you will be able to pay for them after you get paid. Many people use a credit card like this all of the time, by using it for all purchases during a month and then paying it off at the end of the month when they have more funds to be able to do so. You can set up a direct debit to do this and you should even be able to tell the credit card company which date you wish to pay it on so that you can guarantee that you have the funds available to do so.

However, if you borrow money on a credit card and do not pay it back then this is when the trouble can start. Whether you choose not to pay off the bill or you intend to but find that you do not have enough money to be able to do so, the charges will start to be added on. You will find that once the payment date passes there will be an interest charge added on and then a minimum payment, which covers that interest will be taken from your bank. Then each month, if you do not pay it off, you will be charged more interest. That interest can add up really quickly and you could find that you will soon have paid so much in interest, that you would never had bought the items had you realised that they would have cost you so much. As there is no obligation to pay off the card, just the minimum amount which covers the interest, it is very easy to leave the credit card bill outstanding for a long time. You could find that you will get to the following Christmas and still not have paid it off.

A much better way is to start saving up early. Instead of having to whittle away a debt slowly after Christmas, but some money aside each month before Christmas. Then you will have a pot of money to use to buy your gifts from. Hopefully it will be enough and your friends and family will appreciate the gifts as much and you will enjoy it even more because there will not be a big bill waiting for you to pay afterwards. So the first priority should always be to pay off any debts you have as these are expensive Once you have done this then you can start saving up towards Christmas so that you can more easily afford it.

So buying Christmas on a credit card can be a good idea as long as you are sure that you will be able to pay it off at the end of the month. If you are completely sure that you will be able to achieve this, then spend on the card and set up a direct debit to pay off the full balance when it is due. However, if you have any doubts then you need to be a lot more careful. Any chance that you will not be able to pay off the full balance means that you risk having to start paying the interest. You may think that the interest will not matter, but if you keep letting payments slip then the interest can really add up. The debt can hang over your head and it can just sit there unpaid for months and months and be a cause of stress for you. Imagine how those people that received your gifts would feel if they knew that you were stressed over paying back the money that you used to buy their gifts. They would not want you to go through that and would rather you had not spent so much or perhaps bought them anything.