{"id":102188,"date":"2016-12-21T07:47:28","date_gmt":"2016-12-21T13:47:28","guid":{"rendered":"https:\/\/www.thebudgetfashionista.com\/?p=102188"},"modified":"2025-10-18T10:01:40","modified_gmt":"2025-10-18T16:01:40","slug":"holiday-spending-2","status":"publish","type":"post","link":"https:\/\/www.thebudgetfashionista.com\/shopping-guide\/holiday-spending-2\/","title":{"rendered":"How to limit your holiday spending (And then recover!)"},"content":{"rendered":"\n\n\n<p>157.1 million Americans are about to be hit with holiday debt.<\/p>\n\n\n\n<p>December is, for many families, one of the most expensive months of the year. This year, the&nbsp;average spend on holiday gifts is $738 \u2014 and 64 percent of holiday shoppers are borrowing money to get the job done.<\/p>\n\n\n\n<p>Personal finance comparison website finder.com commissioned a <a href=\"https:\/\/www.finder.com\/americans-to-spend-over-181-billion-on-gifts-this-holiday-season\" target=\"_blank\" rel=\"noopener\">Holiday Spending Survey<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><g id=\"wpil-svg-outbound-7-icon-path\" fill=\"none\" clip-path=\"url(#clip0_31_188)\">\r\n                            <path d=\"M9.16724 14.8891L20.1672 3.88908\" stroke-linecap=\"round\"\/>\r\n                            <path d=\"M13.4497 3.53554L20.5208 3.53554L20.5208 10.6066\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\r\n                            <path d=\"M17.5 13.5L17.5 16.26C17.5 17.4179 17.5 17.9968 17.2675 18.4359C17.0799 18.7902 16.7902 19.0799 16.4359 19.2675C15.9968 19.5 15.4179 19.5 14.26 19.5L7.74 19.5C6.58213 19.5 6.0032 19.5 5.56414 19.2675C5.20983 19.0799 4.92007 18.7902 4.73247 18.4359C4.5 17.9968 4.5 17.4179 4.5 16.26L4.5 9.74C4.5 8.58213 4.5 8.0032 4.73247 7.56414C4.92007 7.20983 5.20982 6.92007 5.56414 6.73247C6.0032 6.5 6.58213 6.5 7.74 6.5L11 6.5\" stroke-linecap=\"round\"\/>\r\n                        <\/g>\r\n                        <defs>\r\n                            <clipPath id=\"clip0_31_188\">\r\n                                <rect fill=\"white\" height=\"24\" width=\"24\"\/>\r\n                            <\/clipPath>\r\n                        <\/defs><\/svg><\/span><\/a> of 1,744 American adults, and the results are pretty shocking. Out of the estimated $181.2 billion that will be spent on gifts nationally, $103.3 billion will be swiped on credit cards or paid using other borrowed funds like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>a personal loan<\/li><li>short-term payday loan<\/li><li>a loan from friends and family<\/li><\/ul>\n\n\n\n<p>So how can your family and mine keep holiday spending and borrowing to a minimum? And if we do take out&nbsp;<a href=\"https:\/\/www.credible.com\/personal-loan\" target=\"_blank\" rel=\"noopener noreferrer\" data-saferedirecturl=\"https:\/\/www.google.com\/url?hl=en&amp;q=https:\/\/www.credible.com\/personal-loan&amp;source=gmail&amp;ust=1523623194036000&amp;usg=AFQjCNEkeuaDR2d7xs7RXfnLB3YwDXUFcQ\">personal loans<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a>&nbsp;or use credit cards, how can we recover, fast? We chatted with Head of PR and Money Expert at&nbsp;<a class=\"m_-1057007120654848062vglnk\" href=\"https:\/\/www.finder.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-saferedirecturl=\"https:\/\/www.google.com\/url?hl=en&amp;q=https:\/\/finder.com\/&amp;source=gmail&amp;ust=1523623194037000&amp;usg=AFQjCNHApiIM8svzvuOdb02kL4zWY89lfw\">finder.com<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a>&nbsp;Michelle Hutchison to find out. Read on for more info about holiday spending, the debt it creates, and how shoppers can recover after the financial holiday hangover hits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">And the money expert says&#8230;<\/h2>\n\n\n\n<p><strong>Budget Fashionista:<\/strong> <em>The study notes that 64% will borrow and 16% will use credit cards. What are some of the other borrowing sources shoppers rely on besides credit cards?<\/em><\/p>\n\n\n\n<p><strong>Michelle:<\/strong> While 64 percent of Americans will borrow money in some form, our survey indicated that the main source of finance shoppers will be relying on is their own savings. In fact, 36 percent of Americans will be using their savings alone for gift purchases this year.<\/p>\n\n\n\n<p>However on average, only 59 percent of Americans\u2019 gift buying budget will be withdrawn from savings, leaving 41 percent of their remaining budget to be sourced elsewhere. Other than credit card usage, we found Americans are seeking out short-term payday loans, personal loans and borrowing from their friends and family.<\/p>\n\n\n\n<p><strong>Budget Fashionista: <\/strong><em>Most of us know in&nbsp;theory what a&nbsp;payday loan is, but can you share what differentiates a payday loan from other types of debt?<\/em><\/p>\n\n\n\n<p><strong>Michelle:<\/strong> A payday loan, or short-term loan, is designed to be a small loan borrowed and repaid by the borrower\u2019s next paycheck, usually up to six months depending on what state you\u2019re in. Unlike traditional loans, payday loans can be granted within hours, depending on the lender, and accessible to those with a bad credit score.<\/p>\n\n\n\n<p>Payday loans are unsecured and riskier loans for the lender than other types of loans, and therefore come with higher rates and fees. If payments are missed, they can become expensive quite fast. What started as a relatively small cost can grow rapidly once increased interest rates start to be applied.<\/p>\n\n\n\n<p>Payday lenders have been accused of targeting the most vulnerable borrowers and resulting controversy has seen several U.S. states ban these loans. However, it can be argued that all Americans should have a right to some form of credit, regardless of their financial history.<\/p>\n\n\n\n<p><strong>Budget Fashionista:<\/strong>&nbsp;<em>We hear a lot a about the dangers of excessive credit card spending during the holidays. But to&nbsp;what extent do&nbsp;shoppers rely on payday loans and other borrowing sources besides credit cards?&nbsp;<\/em><\/p>\n\n\n\n<p><strong>Michelle:<\/strong> 15 percent of Americans will use short-term loans for all or some of their gift buying. Another 3 percent will rely on borrowing from friends or family for all of their gift buying. And, 1.3 percent are intending to pay for all their presents with a personal loan.<\/p>\n\n\n\n<p><strong>Budget Fashionista:&nbsp;<\/strong><em>For those who do use credit cards and\/or payday loans for <a href=\"https:\/\/www.thebudgetfashionista.com\/shopping-guide\/holiday-shopping\/\">holiday shopping<\/a>, what are some post-holiday strategies that can help them get out of debt?<\/em><\/p>\n\n\n\n<p><strong>Michelle:<\/strong> If you haven\u2019t saved up enough cash for your gift budget this year, you\u2019re in with the majority of us. There\u2019s nothing wrong with receiving a little extra help during one of the most expensive times of the year.&nbsp;But after the joy of holiday season wears away, don\u2019t allow financial stress consume the start of your new year. Take a deep breath, refocus, action some of these tips and you shouldn\u2019t see yourself reliving the financial strain this time next year.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"735\" height=\"1102\" src=\"https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/DEBT-STRATEGIES-PIN.jpg\" alt=\"three ways to recover from holiday spending\" class=\"wp-image-102287\" title=\"\" srcset=\"https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/DEBT-STRATEGIES-PIN.jpg 735w, https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/DEBT-STRATEGIES-PIN-200x300.jpg 200w, https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/DEBT-STRATEGIES-PIN-683x1024.jpg 683w\" sizes=\"auto, (max-width: 735px) 100vw, 735px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Consider a balance transfer<\/strong><\/h3>\n\n\n\n<p>If you find you&#8217;re struggling to pay off holiday credit, a balance transfer card can be a great option for consolidating debt and save on interest charges. After compiling debt, the last thing you want is to pay high interest on a large debt.<\/p>\n\n\n\n<p>A balance transfer essentially allows you to combine all of your existing debt onto one credit card and repay it in installments at a lower rate over a certain period of time. Many balance transfer cards offer no interest, meaning that you won&#8217;t be charged any interest on your debt for a certain period of time.<\/p>\n\n\n\n<p>Make sure to read the fine print for promotional period <a href=\"https:\/\/www.finder.com\/managing-balance-transfer-credit-card\" target=\"_blank\" rel=\"noopener\">expiry dates, balance transfer fees, annual fees<span class=\"wpil-link-icon\" title=\"Link goes to external site.\" style=\"margin: 0 0 0 5px;\"><svg width=\"24\" height=\"24\" style=\"height:16px; width:16px; fill:#000000; stroke:#000000; display:inline-block;\" viewBox=\"0 0 24 24\" version=\"1.1\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" xmlns:svg=\"http:\/\/www.w3.org\/2000\/svg\"><use href=\"#wpil-svg-outbound-7-icon-path\"><\/use><\/svg><\/span><\/a> and other conditions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Come up with a budget<\/strong><\/h3>\n\n\n\n<p>Once you know how much debt you have and your repayment costs, it&#8217;s time to get your finances in order. Try to prioritize paying down the debts with the highest interest first. The more you can pay off now, the less you have to pay off later and the less interest you&#8217;ll incur in the long run.<\/p>\n\n\n\n<p>Set up automatic, consistent direct debits so you\u2019re not penalized for late payments. Work out what you\u2019ll be spending monthly and set aside the appropriate funds so you\u2019re not tempted to borrow more until you\u2019ve paid off your current debt.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Build up your FICO score<\/strong><\/h3>\n\n\n\n<p>If you took out a payday loan due to no credit history, after having paid back your loan, you could look into responsibly building your FICO score from scratch. If you\u2019re receiving a consistent income and you\u2019re confident you could make frequent repayments on time, look into taking out a secured credit card. After six&nbsp;to 12 months, you should notice a vast improvement to your credit score.<\/p>\n\n\n\n<p><strong>Budget Fashionista:&nbsp;<\/strong><em>What are some strategies families \u2014 those who don&#8217;t have a lot to spare \u2014 can use to start saving now for next holiday season?<\/em><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"735\" height=\"1102\" src=\"https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/controlling-holiday-spending-pin.jpg\" alt=\"how to control holiday spending\" class=\"wp-image-102288\" title=\"\" srcset=\"https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/controlling-holiday-spending-pin.jpg 735w, https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/controlling-holiday-spending-pin-200x300.jpg 200w, https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/controlling-holiday-spending-pin-683x1024.jpg 683w\" sizes=\"auto, (max-width: 735px) 100vw, 735px\" \/><\/figure><\/div>\n\n\n\n<p><strong>Michelle:<\/strong> My number one rule is to holiday shop throughout the year. Take advantage of sales that pop up during 2017. That way, when everyone else is stressing during the last quarter of the year, all you have to worry about is putting out&nbsp;your festive decorations!<\/p>\n\n\n\n<p>Also, it could be a good idea to open a savings account just for your holiday spending. Set a target savings goal for year-end, and then make automatic payments each week or month to make it happen.<\/p>\n\n\n\n<p>And consider the necessity of your generosity. Sure, immediate family members probably belong on your \u2018to buy for\u2019 list. But don&#8217;t feel obligated to give to colleagues, all your extended family members and your entire group of friends. Perhaps initiate a Kris Kringle amongst larger circles instead, with a $5 or $10 cap on gifts. Make a list of those for whom&nbsp;you will be purchasing gifts, set a limit and stick to it! You can monitor your spending with a spreadsheet&nbsp;or even with&nbsp;pen and paper.<\/p>\n\n\n\n<p>Stalk <a href=\"https:\/\/www.thebudgetfashionista.com\/archive\/best-online-coupon-sites\/\">online coupon and discount sites<\/a> and sign up for alerts so you\u2019ll receive emails of deals as they come in, and don\u2019t forget to browse cashback sites as they\u2019ll reward you a percentage of your spending back after completing your shop at certain stores.<\/p>\n\n\n\n<p>Finally, don\u2019t be afraid to purchase second hand or browse <a href=\"https:\/\/www.thebudgetfashionista.com\/archive\/new-york-city-thrift-stores\/\">thrift stores and vintage shops<\/a>. I\u2019ve donated really expensive, worn-once items to thrift stores \u2014&nbsp;there are definitely hidden steals amongst the racks! Make a day of it, take your friends and see who can bag the best bargain!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>157.1 million Americans are about to be hit with holiday debt. December is, for many families, one of the most expensive months of the year. This year, the&nbsp;average spend on holiday gifts is $738 \u2014 and 64 percent of holiday shoppers are borrowing money to get the job done. Personal finance comparison website finder.com commissioned&hellip;&nbsp;<a href=\"https:\/\/www.thebudgetfashionista.com\/shopping-guide\/holiday-spending-2\/\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">How to limit your holiday spending (And then recover!)<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":102289,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[24],"tags":[303915],"class_list":["post-102188","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-shopping-guide","tag-gift-guide"],"mv":{"thumbnail_id":102289,"thumbnail_uri":"https:\/\/www.thebudgetfashionista.com\/wp-content\/uploads\/2016\/12\/controlling-holiday-spending-tweet2-300x150.png"},"_links":{"self":[{"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/posts\/102188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/comments?post=102188"}],"version-history":[{"count":0,"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/posts\/102188\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/media\/102289"}],"wp:attachment":[{"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/media?parent=102188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/categories?post=102188"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thebudgetfashionista.com\/wp-json\/wp\/v2\/tags?post=102188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}