Taft Financial’s holiday debt strategies are dangerous according to multiple personal finance sites. Taft Financial has begun flooding the market with personal loan, debt consolidation and credit card relief offers in the mail with the website My Taft Financial. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect.
The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2020 Reviews, the personal finance review site, has been following Taft Financial, Georgetown Funding, Credit 9 and others.
The holidays are typically the season of indulgence. It’s the time to have all the food you want, dig into all the desserts you love, drink all the beverages you want and spend all the money you have. However, it is likely that this holiday season is quite different from all the previous ones due to COVID-19. The pandemic has affected the economy negatively and proved to be a threat, not just for our lives but also our finances.
Despite all the financial setbacks, it’s been noted that shopping habits have enhanced since the past year and many people plan to spend more during this year’s holiday season. While shopping is good for the economy, it may not be that great for you.
You might be entering this year’s holiday season with a lot of debt, and purchasing more items for the holidays will lead to a more significant pile of debt. This debt accumulated at the end of the year is perhaps the worst type of debt, as you will be carrying it forward to the next year. As a result, you might spend the new year only trying to repay all of it!
Therefore, this year, make it a point to control and manage your holiday spending so that you don’t end up regretting your decisions. Here are nine strategies that will help you manage your holiday debt.
1. Create a Holiday Budget and Stick to It
This is the first thing that you must do as you enter the holiday season this year. Set up a budget based on your income and how much you plan on spending. This should not just include presents, but also your regular monthly expenses, such as bills and grocery payments. Having a budget will also help you decide how much you can spend on your loved ones and cut out unnecessary expenses.
In the end, you will end up with a lower holiday debt, which will be easier for you to pay off in the future and avoid needing credit card relief.
2. Look for Credit Cards that Offer Benefits
If you are getting a credit card or switching to another credit card issuer, it is essential that you look for one that offers benefits, such as travel points, shopping points, cashback, and other rewards. You can redeem these points or rewards while you do your holiday shopping, and even gain more points!
Additionally, many credit card issuers also provide exclusive discounts on specific shopping portals. You can consider shopping there for your holiday presents so you can save up extra cash.
3. Gift Small Experiences
This year, you can consider gifting people experiences instead of tangible objects. This can include offering your services, such as cooking a special meal for them or walking their dog for a week. Experiences do not necessarily have to entail going on a trip together; it can just be these simple, helpful gestures.
Not only will they not cost you anything, but they will also be well received. So think outside of the box and be creative about the experiences you can gift to your loved ones.
4. Start Early
Starting your holiday shopping early will help you prepare and stay organized. It will also give you the opportunity to save up through discounts. By avoiding last-minute shopping, you will save up from spending extra as it can often be too costly.
5. Get a Credit Card with 0% Introductory APR on Purchases
Consider getting a credit card with a 0% introductory APR on purchases that will help you save on interest charges when you are shopping. It will help you get through the holiday season, and when you begin repaying the debt, it will be significantly lower as you will not have interest charges.
6. Choose a Debt Reduction Strategy for the Next Year
It is better to be prepared beforehand. Hence, you should evaluate and decide which debt reduction strategy you will go with to repay your holiday debt in the next year. Due to the pandemic, balance transfers as well as low-cost personal loans have become more difficult to obtain. However, this is likely to improve in the next year as the economy has steadily been improving.
If you have a low credit score, you might not be able to qualify for a balance transfer or personal loan. Thus, you can consider other options, such as a debt consolidation loan or consulting a debt counseling agency.
7. Collect Coupons
Sales and discounts are not the only ways to save up extra cash when you are holiday shopping. When researching sales online, look out for websites offering coupon codes.
8. Ensure Better Spending Habits
The most important way to prevent accumulating holiday debt and suffering from the anxiety of paying back all that debt is to first take a look at all of your spending habits. As the holiday season begins, you should consider developing better spending habits, such as avoiding impulsive shopping or buying something entirely out of your budget.
9. Pay with Cash
If you plan on going to physical stores to shop, consider paying with cash as much as you can to avoid credit card debt. If you do not have cash, do not buy it. This will surely prevent you from accumulating a large amount of debt by the end of the holiday season.
Since it has become harder to qualify for balance transfers and loans, it is best that you curb your holiday spending beforehand rather than struggle with debt as you enter the new year.