Even if you live on a monthly budget you may find yourself putting holiday expenses on your credit card. If you are unable to pay these off in full, it will end up costing you even more when adding in finance charges.

Along with your monthly budget, sit down and make a list of your holiday expenses. By having a total amount, it is easier to know how much you should be setting aside each month or paycheck.

As Dave Ramsey says, “You should not use your emergency fund for holiday expenses. Christmas is always December 25, it is not an emergecny.”

Here is a blog post from Crystal of Moneysavingmom.com with tips to have an All Cash Christmas.

If you find yourself in credit card debt this holiday season, do your best to pay it off as soon as you can and start planning for next year for a debt free holiday season.

Nancy Kvamme

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