How to Avoid Debts when on a Holiday

Who doesn’t want to enjoy a holiday trip with their family . But many of us fall in the debt trap during such outings due to lack of proper financial planning. Most of the people want to live debt-free, but avoiding debt or reducing payments on debt isn’t easy to handle. In our day to day life there may be many such situations. So, it is important to find a way to reduce debt related problems as soon as possible. In other words everyone should have a control over their financial expenditures.


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    Set a budget - Setting your budget is the first important step so that you know exactly how much you can spend this holiday season. You should always try to compare prices and see what the best deal you can find. Try to avoid any unplanned purchase. Carry your shopping list with you. Start early so that you can compare and get the best deals.
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    Make a List: - Make a list of things that you have to purchase and then stick to it. Your wish list should be according to the budget. There should be a clear plan of how much you will be spending on gifts, entertainment, travel etc.. When you are done, sum it up and compare the total to your budgeted amount, then make proper adjustments.
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    Go debit : - Debit cards (instead of Credit cards) with a bankcard logo are typically welcomed at most of the stores where cards are accepted. In this way, you can avoid the over spending and restrict yourself to the planned budget. If you don't have a card , you can probably get one from your bank to replace your traditional ATM, card ,but remember to tell them to limit your buying power to the cash balance in you account.
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    Give yourself the gift of financial analysis :- If you are trying to get finances in order , you could buy yourself an hour of time to get a financial adviser.This meeting could extend beyond your holiday spending goals to setting targets for saving, investing, extinguishing debt, and setting financial goals for the future.
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    Don't buy if you can't afford to pay :- You know your finances better so, try to purchase what you can afford . You should look for bargains . Make a shopping plan then go for purchase; this will help to set your budget for purchasing.
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    Use your credit card wisely:-. You should not use your credit card unless you are running out of cash within your budget. Only use one credit card if you have to make your purchases this year on credit. You should be very careful while using credit card to pay for holiday expenses.


  • Always use cash instead of using credit facility for your holiday spending.
  • Set a spending limit and stick to it.
  • Don't buy if you can't afford to pay. Don't spend more than you make.
  • Make a note of your purchases as the happen and don't go beyond your budget.
  • Don’t make a separate list for the gifts instead include them in your list of “All things to be purchased”. You can track your spending as you shop.
  • Pay your bill on time (If credit facility is used) . If you are late on payments, your interest rate and future payments might go up.
  • Pay in cash, paying cash allows you to see the money you have as you spend it.


  • Make an appropriate budget so that you don’t have to compromise with your wish list.
  • Use your lowest rate card (i.e. the card with minimum interest rate) to avoid having as much debt.
  • Always pay in cash if it is possible.
  • Keep all your receipts to avoid future hassles.
  • If you have college loans, pay off as much debts as you can during grace period.
  • Remember that supermarket don't exist to help you, they exist to make money for the owners/shareholders.

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Categories: Budgeting