Holidays can damage credit score

The holiday shopping season is coming up, and if the trends this year follow last season, consumers will likely spend more than they bargained for.

A Consumer Reports poll taken last year revealed that consumers with credit cards charged $180 more than they originally anticipated. In a separate but more recent poll, the company revealed that an estimated 13.6 million people were still paying off last year’s debt.

To counteract this, travelers should set a budget and try their best to stick to it. The Tulsa World suggests making a list of gift ideas for everyone that a shopper plans on buying. This way, they can ensure that they don’t go overboard by making an unexpected purchase.

It also helps to take advantage of savings. Nobody likes to fight with crowds on Black Friday, but this is typically the best day of the year for shopping deals. Just because a traveler sets a budget doesn’t mean they should bump up against it. It’s better to try and spend less than a certain number.

Buying extravagant gifts might seem like a good way to put a smile on others’ faces this holiday. Yet consumers need to remember what the debt can eventually do to their credit score if they don’t have a plan for paying it off right away. For buyers with a bad credit history, spending moderately is even more important.

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