15 Last-Minute Tips to Avoid Holiday Debt

The holidays may be a much-anticipated time of the year, but they can also be very expensive. And it's not uncommon for consumers to close out the holiday season deep in debt. If you'd rather avoid that fate, here's what to do.

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Knowing how much you can afford to spend in advance of the holidays will help you avoid taking on too many expenses. See how much money you have at your disposal based on what your savings look like coupled with your incoming paychecks, and then pledge to stick to that limit.

ALSO READ: 73% of Consumers Are Making This Savvy Move During the Holidays

You may have a lot of obligations during the holidays, in which case boosting your income with a side hustle could really help. That extra money could give you the leeway to buy all of the gifts you need without having to rack up a massive credit card tab you can't pay off right away.

If you're going to get a side hustle, consider working retail. If there's a store you expect to do a lot of holiday shopping at, you may be eligible for a sweet employee discount.

You may have gifts to buy, a tree to purchase and decorate, and lights to procure and hang. If your budget doesn't allow for all of those things, decide which are the most important to you and pay for them first.

ALSO READ: 4 Ways I'm Making the Holidays Less Expensive This Year

It's nice to be generous during the holidays. But if you're limited in funds, don't feel compelled to exchange gifts with distant relatives and acquaintances. Instead, narrow down your list to the most important people in your life.

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Sometimes, the best gifts are those that come from the heart. You can save money and lower your risk of debt if you give out homemade gifts instead of store-bought ones that are more expensive.

If you have a history of overspending on credit cards, you may want to stick to cash this holiday season. Doing so could make it easier to adhere to the budget you set.

ALSO READ: 3 Ways to Cut Down on Credit Card Use Without Closing Your Accounts

If you're sitting on credit card rewards, now may be a good time to use them. If you can convert those rewards to money off of your next retail purchase, you’ll be less likely to land in debt.

Many credit cards offer sign-up bonuses that give you a lump sum of cash for meeting a certain spending threshold. It pays to see if you qualify for any of those offers, especially if you know you can meet their spending requirements easily due to your anticipated holiday expenses.

If you're buying big-ticket items as holiday gifts, spend some time comparison shopping. The less each purchase costs you, the less likely you'll be to wind up with debt.

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You may have your eye on certain items you'd like to snag in conjunction with holiday sales. But if buying them will put you over budget, hold off. Not only might that help you avoid debt, but you might snag a better deal once the new year rolls around.

ALSO READ: 45% of Consumers Will Use 'Buy Now, Pay Later' Services for Holiday Purchases. Is That a Good Thing?

If you'll be traveling to see loved ones during the holidays, hitting the road could prove less expensive than paying exorbitant airfare -- especially if there are multiple people in your party. And that way, you won't get hit with fees for things like checked bags.

If you'll need lodging at your holiday destination, you could save a decent chunk of money by renting a private home rather than booking a hotel. And you may find that a private home is also more comfortable than a cramped room.

If you'll be hosting family for a holiday meal, resist the urge to have it catered. Doing so will cost a lot more money than preparing that food yourself. If you're not the most experienced cook, keep the menu simple and don't be shy about asking guests to bring side dishes, drinks, or desserts.

ALSO READ: 5 Tips to Stretch Your Money as Everyday Expenses Increase

Restaurants and clubs tend to charge a premium on New Year's Eve. And paying up for a single night out could result in a pile of debt you don't want. A better bet? Have a low-key gathering at home -- one that adds minimally to your holiday spending tab.

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The last thing you want is to start off 2022 with a pile of debt hanging over your head. Follow these tips to avoid that scenario -- and the stress that goes with it.

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