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Tips for avoiding holiday debt

Posted at 8:00 PM, Dec 10, 2018

Overspending on gifts has become as traditional as the Christmas tree.

A recent Nerdwallet survey finds one in four Americans is still paying off the debt from last Christmas.

“There’s a tendency to get caught up in the holiday shopping spirit,” says financial adviser Lynnette Khalfani-Cox. “The music, the festivities, the smells are encouraging you to spend and retailers are pretty savvy about getting you to buy more.”

Khalfani-Cox, a self-proclaimed “money coach,” says to avoid debt, avoid store shopping or avoid paying with a credit card.

“My number one tip for avoiding debt is to pay with cash and to use online shopping as ways to help you avoid the temptation to overspend,” Khalfani-Cox says.

She also recommends a new resolution for the new year: start saving early for next year. Just $50 a month will add up to $600 by the time next Christmas arrives.