Most people who get credit cards do so because they would love to have something to fall back on in case of emergencies. But let’s be honest: after the first couple of purchases its really easy to go overboard and get yourself into debt. I’m sure we’ve all been there at some point!
Before you decide whether or not you should put all those Christmas purchases on your credit card, here are a couple of things that are worth considering:
How close are you to your credit limit?
First and foremost, you need to know whether you can afford to use your card for these expenses without overdrawing on your account.
Consider the interest rate
Again, can you afford to rack up that amount of interest? For a lot of people, it’s the accumulating interest that makes it hard for them to pay off their outstanding balance.
Emergency protection. If you get too close to your credit limit buying Christmas presents, will you be able to use your card for emergency fund if a situation arises?
The truth is a credit card make it a little too easy to spend money. If you’re anything like me, it’s easy to pretend like you’re not spending real money when you’re not paying with cash. If you’re not careful, it’s easy to fall into suffocating debt. It all comes down to being careful with your money. Missing payments, going over your credit limit, or having too many credit cards can quickly put you in financial debt!
For some people, credit cards can be destructive and getting caught up in the festivities can be detrimental to your financial health. However, as long as you can use your card wisely, there’s no reason why you can’t share your Christmas expenses between your debit AND your credit card!