You’ll have to bear with me today, I’ve got post topics coming from everywhere! I have a question for you-how do you pay for Christmas? Cash? Or credit cards?
Chris and I have been a (mostly) cash-only couple since our bankruptcy in 2001. We do have a VISA (thanks, Target!), but we keep it paid off and use it for things like hotel reservations. We have Mastercard Debit Cards from the credit union, and that’s what we use to buy pretty much everything. One of my cards gives me cash back for doing a credit transaction instead of a debit, so I use that one the most.
So here’s the $100,000 Question-Do you buy more when you use credit? Do you do balance transfers to a 0% interest card in January? Or does it take you all year to pay off the balance so you can charge the next year’s Christmas stuff?
At the very least, it’s a good idea to compare credit cards to get the lowest rate, or the most cash back, or the most airline miles, or whatever rewards you are most interested in. And don’t do like I did and let the balances build up until you have to file bankruptcy to get out. I definitely do NOT recommend that.
I never overspend at Christmas; only what I need to.
We just finished Dave Ramsey’s Financial Peace University and highly recommend it! Especially when it is taught by the right people! In answer to your question, we are doing a debt free Christmas for the first time ever this year after saving for 4 months to be able to pay cash for presents. This way there is no guilt after Christmas. You can just enjoy the holiday!
We use credit cards for everything, and I mean everything! However, we also pay it completely off every month, without fail. As my dad always says…I am NOT rich enough to afford to pay interest!
I probably have a few more impulse buys using credit, but I think if you do it long enough, you just get used to it and know that too many purchases in a month may mean taking a dip out of your savings, which is depressing.
We also use a Citibank card that gives cash back. You can earn up to $300 back per year and we always are able to earn the full amount back. So in addition to keeping my money in the bank all month, I also get an extra $300 bucks a year. In fact, I just requested my cash back check today and am getting $108. Definitely needed this time of year!
Twitter: tanyetta
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We have ONE credit card. Pay it off at the end of the month. I never over spend during the holidays. I never over spend during any holiday. NOPE, not gonna happen. Being in debt scares the heebie jeebies out of me!
Cash. Well, I may use the debit card, but still.
We have one credit card we use for gas because we get a cash rebate to Costco and can use it at Costco’s gas pumps, but that gets paid off every month. And one other one that hubby uses every other month or so for stuff he needs to buy for work (and gets reimbursed the next paycheck). All we’ve got debt-wise is the new car, student loans and the house.
Since we started doing the budget thing a la Dave Ramsey, I set aside a certain amount each month into our secondary checking account for things like gifts, insurances (that only come due once or twice a year), home repair (because there’s always something), etc. So we have a little stash for when birthdays and Christmas roll around.
This year I’m totally going the even cheaper route – I couldn’t find anything I liked, especially since we’re avoiding made-in-china stuff right now. And rather than spending a truckload on places like etsy.com, I’m just making the kids’ gifts myself. Which is actually kinda fun.
I even went and got the makings of the presents on Black Friday with my coupon to Michael’s to make it even slightly less expensive. 
I list all the things I need to buy, especially the names of the people and what gift I will give them early as november so that i can budget how much i will be spending for christmas.
We also only have 1 creditcard. I dont feel happy until the debt is payed in the end of the month. Feel so bad to be “behind” all the time.