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 emergency.”

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. If your financial circumstances have changed it is important to adjust your spending to match them as soon as you can before you get into deep financial troubles. I know it may be difficult to cut spending but the longer you wait, the harder it will be and the more debt you will possibly be in.

This is part of a series I am doing for DIY holiday ideas. Click Here for the other posts from the month.

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Nancy Kvamme

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