As the new year approaches for some of us, our New Year’s Resolution is to get our credit report and Credit score back in order, but before you can do that you are faced with the Holidays and maxing out your credit to please your friends and families with lavish gifts. STOP! Put that credit card down and instead get your notebook out and make a list, check it twice and determine who’s been naughty and who’s been nice.
When you’re working towards complete credit repair, one thing that’ll make the journey easier is learning how to stretch your purse strings as far as they’ll go. Keeping your credit card balances low is an important part of credit repair, and nothing can help you achieve that better than learning how to get the most out of your limited budget.
The following are a few tips to help you make the most of your money when attempting credit repair:
1. Set a budget for your holiday spending
Using your credit cards shouldn’t be your main source of spending, but more as a back-up. Evaluate which of your cards offer you specific rewards for using them, and use those to help you build better credit and get rewarded for doing so.
In addition, the money you have put side to spend on gifts you can increase that amount by tailing back on money you would spend somewhere else, like that morning starbucks run or eating out for lunch and dinner. You’d be surprised at how much more you will have to spend and how much less you will have to resort to the credit card.
2. Coupon Clipper here you come
This is a no brainer and worth the work. We are all mostly computer savvy, so get on your favorite search engine and start looking for coupons from your favorite stores. Stick to shopping for items that are on your list, don’t deviate. You will almost always find deals and this can help stretch out your budget and even have money left over to buy those Ugg boots you have been eyeing.
3. Personalize your gifts
A small gift can go a long way. Remember, you do not have to buy expensive gifts for everyone you know, in fact in a lot of cases people appreciate knowing you took the time to to make them something special, maybe a favorite cake, cookie, a cute colleige of your favorite times together. This is not only an enduring gesture, but it is also money saving.
4. Your Next Holiday Season
Now that you have gotten through the holidays and the new year is approaching, you are ready to get credit and finances back on track. Do yourself a favor, prepare yourself for the next holiday season and keep reduce the amount of times you go and eat out and instead take that money and transfer it to a saving account. You can also do a periodic house purge and sell items you no longer need. This gives you more time to save and will not harm your budget.