GRAND BLANC, Mich. — The holiday shopping rush is in full swing and if you aren't careful, overspending could put you in a world of hurt come January.
Decisions you make right now can have a major impact on what your finances look like in the coming months and even years.
For this 13 OYS Money Guide, Meredith TerHaar spoke with Lysa Bradford, who is known as the Trusted Banker on Instagram.
She says failing to set a budget is problem number 1:
"People carry over $1,400 on average of holiday related credit card debt. And if you look at it, holiday related debt is adding onto the debt you are already paying every month, it can take you 85 months or seven years to pay that back with just paying the minimum payment. That is looking at $700 more in interest charges and that's a lot when you think about within those seven years you still have seven more Christmases too," explained Lysa.
So here is what she suggests.
Prioritize. Set a budget and stick to it. That discipline is so worth it and you'll feel good about it.
Start saving now for next year's gifts and charitable donations to organizations you are passionate about.
She also says we don't need to vilify credit cards.
"If you are disciplined, some people are cleaning up on credit card rewards. They are getting the benefit for spending those extra few dollars that you know you are going to pay off...free gas, trips...but only if you have the discipline to pay it off," she said.
Lysa also reminded us about after Christmas sales. If there is something you can wait to purchase till after the 25th, it might be a really good idea to do so.
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