It’s the holiday season, which is the most dangerous time of the year for your bank account. Craft Law Office is here with some helpful hints on how to spend this holiday season – without maxing out your credit card.

1. Set a budget.

You don’t want to end up in a pile of debt once the holiday season is over, so setting a budget is a crucial step. Writing out who you need gifts for, how much the gifts you plan on getting cost, how much you’ll spend on food, how much you’ll spend on childcare, etc. can be really beneficial. Remember – this budget is supposed to work for you. Include all your needs, categorize your expenses, and stick to it.

2. Get to know your rewards program.

One of the best parts about a credit card is the rewards program. Really get to know what you’re gaining and how to use it to your advantage. Some things to consider are:

• What purchases get you rewards?
• What are the rewards you can get – cashback, miles, points, etc.?
• How many points, miles, cashback, etc. do you get per $1?
• How much are your points and miles worth?
• Is there a spending limit on your rewards?
• How can you redeem your rewards?

3. Lower your interest rate(s).

If you’re unsure you’ll be able to pay back your holiday debts, you’ll end up having to pay interest on that balance. It’s worth reaching out to your credit card company and asking for an ARP reduction. If you’re a good customer, they just might grant it. Another way to achieve low interest rates would be opening a new credit card with a 0% introductory ARP for purchase. Or you could transfer your holiday-spending balance to a card with 0% ARP. Just make sure you wait until after the holidays.

4. Shop safe and watch your accounts.

Tis the season for card fraud. Shopping online can be a risk, so make sure you’re monitoring your bank accounts and know about the activity happening on your card. Since the COVID-19 pandemic, there’s been a huge uptick in credit card fraud. Keep yourself safe by:

• Linking your cards to a mobile payment app that’s secure (like Apple Pay or Google Wallet).
• Use secure websites when shopping online – “https:” is more secure than “http:”. Sites will also usually have an SSL security certificate.
• Don’t make online purchases with your credit card while using public WiFi.
• Set up notifications for when your card is charged. Apps like Apple Pay and Google Pay will allow you to do this.

5. Skip over the store cards.

It’s enticing – the opportunity to open a store card and save some money over the holiday season. But some of the cards have steep interest rates, and the interest will exceed the amount you save. All in all, it’s not worth it.

Shop smart this holiday season with these five tips from Craft Law Offices! If you find yourself in trouble paying off your debts (holiday or otherwise), let Leslie Craft help you. Visit craftlawoffice.com or call 252-752-0297 to schedule a free consultation!