How to Have a Debt-Free Christmas

It’s exceptionally hard to avoid taking on additional debt during the Christmas season. Maybe it’s unrealistic expectations about gift-giving; or maybe it’s just poor budgeting. Whatever the case, here are few tips for enjoying Christmas — and leaving the debt behind.

Do a Name Swap

If you’re buying gifts for multiple people in your family, then consider drawing names and buying one gift for just one person (instead of everybody).

Example: If there are four people in your family, then each family member would purchase only one gift. That would be four gifts purchased by the whole family.

If, on the other hand, each person bought gifts for the other three family members, 12 gifts would be purchased. (4 family members x 3 gifts apiece = 12 gifts) So by drawing names, it’s possible to reduce your gift-spending by 200%.

Make Your Gifts Yourself

Do you have a skill for making things? Then consider making your gifts instead of spending money to buy them!

I’m lucky that my wife has a talent for making hair bows, jewelry, and Christmas ornaments. Many times she has used her skill to make gifts and save us money.

Go “Gift Free”

Is it really necessary to buy gifts for your family members and friends? Is there really anything they need or want in the first place?

Consider putting a moratorium on Christmas gift-giving for one year. Focus on spending time with people you care about.

Write a List

If you decide to buy gifts, then don’t set foot in a retail store without knowing exactly what you’re getting — and exactly how much you plan to spend.

Window shopping is a friend of debt. But if you have a clear purpose and budget, you’ll walk away with your finances intact.

Leave Credit Cards at Home

When buying gifts, use cash or debit — but avoid using credit. Since you’re spending a lot of money in between the statement cycle, it’s too easy to lose track of what you’ve spent.

What’s more, by leaving your credit cards at home, you won’t get any unpleasant surprises when the December bill shows up in your mailbox in January.

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