The holiday shopping season is upon us. A recent PwC report revealed that shoppers plan to spend $1,638 on holiday shopping in 2024. With all the fun festivities and gift giving, it can be easy to forgo smart choices when it comes to spending and your finances. For example, it’s all too easy to fall into credit card traps that are especially relevant during the holidays.
Retailers are experts at getting you to spend more than you want. If you fall prey to their tactics, a nasty credit card bill may await come January.
Find Out: 4 Things You Must Do When Your Savings Reach $50,000
Read Next: 6 Steps To Take Now To Avoid a Shocking Holiday Credit Card Bill
Thankfully, it doesn’t have to be that way. Avoiding these credit card traps will help prevent a surprising bill come the new year.
Also see eight pro tips on how to budget for the holidays.
Trending Now: Boomers Hold Half of U.S. Wealth–So Why Are Thousands Living Without Homes?
Buying Something Not in Your Budget
It happens to all of us. You’re in the store to purchase a gift for a friend. You see something that catches your eye and throw it in your cart. While impulse shopping is fun, it quickly adds an unplanned expense to your credit card. Go back to the basics of personal finance. If you didn’t budget for the purchase, don’t put it on your credit card.
This doesn’t mean you need to be a Scrooge. But planning your purchases is the best thing you can do for your credit card. If you didn’t set aside money throughout the year for holiday shopping, you’ll further intensify the damage caused by unplanned purchases.
Check Out: 5 Reasons Retirees Should Use Only Cash for Holiday Shopping
Overusing Store Cards
Retailers love to promise 10% off a purchase or a free gift if you put a purchase on their store card. You may even see more of this come the holiday season. And keep in mind that these aren’t loyalty cards but actual credit cards for that specific store.
Store cards can be rife with high interest rates, making it worse if you don’t budget for purchases. It’s usually best to politely decline the offer and use your standard credit card or another payment method. If you’re prudent with your purchases and use a rewards card, you can benefit far more than using a new store card.
Not Using Discounts Your Credit Card Offers
Store cards often promise special discounts or deals to entice you to spend more, but you may be overlooking similar or better deals available through your current credit card.
Log in to your credit card account to identify potential savings opportunities. They can range from a percentage off purchases at popular retailers to cash back on a purchase. Not using them may needlessly overextend your shopping budget. Just remember the discount is valuable only if you were already planning on purchasing something at the store.
Saving Your Credit Card Information on Your Internet Browser
Saving your credit card information on your browser is an easy way to save time on purchases. That convenience cuts both ways, though. It can also lead to overspending, especially during periods when you’re shopping more than you normally do, such as during the holidays.
There’s a mental piece to spending. It hurts to part with money; the same can be said when shopping online. If you have your credit card information stored, go into your settings and remove it. Doing so adds one extra, albeit small, hurdle to making purchases. It gives you one more opportunity to think through the purchase and whether it’s one you want to put on your credit card.
Shopping for friends and family members during the holidays can be fun. It’s also something that can lead to needless credit card debt. Instead of flexing that plastic muscle, think twice before making a purchase. Doing so can be an easy way to reduce or eliminate a holiday debt hangover come January.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 4 Credit Card Traps To Avoid During the Holiday Season