Getting into Debt over Christmas
As the holiday season is fast approaching we thought that you might consider the situation after Christmas if you were going to charge most of your gifts on credit cards.
Do not buy into the logic of the credit card companies. When they write you the note with your November or December statement that you can skip the December payment because you have been such a good customer, consider that the interest is still being charged at their normal rates (18% – 21%). All that is happening is that your balance on the card will go up in January – and so will your monthly payment.
When credit card companies mail you card after card, you will convince yourself very quickly that you are a good credit risk and you can handle the credit. The credit card companies are under no such delusion. They know exactly how many defaulted payments they will get. They are prepared to accept the risk of a default as a business decision. The trouble is the risk of default is all on you.
When you do your Christmas shopping, stay in control. Do not buy presents just because you can pay with plastic, you do not want to be up to your ears in credit card debt after the holidays. Budget your purchases and stick to your budget. It is hard to do this, but the payoff is sweet. In January you will not be overwhelmed when you open your mail.
Have a great holiday!
Carl Rumanek is a principle with Rumanek & Company Ltd.
Trustee in Bankruptcy, Administrators of Proposals & Debt Consolidation Programs
Call 416-665-8326 ext. 305
Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.