Tips to avoid overindebtedness at Christmas
As the Christmas season approaches, concerns begin to buy gifts and, in turn, the debts that come with the use of commercial house cards or consumer loans.
Now, it is important to think that, after Christmas, comes the New Year and the holidays and then March, which is a month in which many expenses are normally incurred, so you should not think of Christmas as a time of isolated expenses, but this time must be placed in its proper context.
Well, in order to meet the expenses included in the Christmas season, the expert lawyer in defense of debtors, Ejay Glefordossas, gives us the following advice and does not increase the numbers of delinquent debtors in our country.
Realistically analyze your family’s income and expenses: Unfortunately it is very common for families not to worry about limiting their expenses to the family’s income, with the disastrous consequence that the salary, at the end of the month, is not enough to cover the necessary expenses, which generates greater indebtedness and, in the end, the family debt becomes a vicious circle from which it is very difficult to get out.
Make a budget that includes Christmas gifts
Ejay Glefordossas strongly recommends that a budget be made that includes not only the basic and necessary payments, but also includes the amounts to be spent on gifts, since if these are not subsequently include one will inevitably get out of the budget and the usefulness of this tool will be frustrated. Also worry about considering the income of future months, since if you acquire debt without considering how much you will earn the following months it may be negatively affecting the holidays and even the return to classes of the children.
Quote before buying: While it is true it can be exhausting, if you want to get away from the end of the year shopping, you are advised to quote before buying. The price difference for the same product can be considerable depending on the place in which one buys, so it is recommended to do so in those places where the final cost of purchases is less. Beware of online purchases, since they are cheaper than physical ones in most shops, and we are in a good time to not have problems with stock of products and have our products in time for the holidays.
Ideally make all your purchases with one card
If you make purchases with a single card, you will have to pay for administration and interest charges only that card, but if you use more than one, you must pay those items for each one, then increasing the total to pay monthly.
Choose a payment date of the card close to the receipt of your income: It is important not to generate higher interest for arrears that your payment date of the card or cards is close to that on which you receive your income, since if your date of payment, for example, is the 20th day of each month, but receives your income on the first business day of the month, it is very likely that at the date of payment you no longer have money to pay, and you will have to wait for the next month’s compensation , generating with them the corresponding fines and interests, which makes their purchases more burdensome.
Better and worse forms of payment
Donoso tells us that it is always best to pay cash purchases, either with savings generated for these purposes during the year, or strictly using extra income, such as the bonus, but if it is necessary to resort to buying with cards, it is better You concentrate all your expenses in one and buy without fees canceling at the end of the month. It is also possible to buy in 3 or more installments at a cash price; These promotions are frequent in almost all commercial houses and financial institutions that offer cards.
However, if you need to borrow and opt for a loan, it is best to keep it small and the rate is low and the fees do not exceed 15% of your family income. What is not recommended to use are credit lines or cash advances, since they have a high interest.