Make These 3 Moves Now to Avoid Holiday Credit Card Debt This Year

The holiday season is upon us. And whether that's something you're excited about or not, the reality is that you may be gearing up to spend a lot of money. 

Now, if you have the cash sitting in your savings account, you're in good shape. But that's not the case for a lot of people. And the last thing you want is to close out the holiday season loaded up with credit card debt. If you make these moves now, though, you might manage to avoid that fate.

1. Set a spending budget for gifts

A good 21% of U.S. consumers expect to spend more than $1,000 on holiday shopping this year, reports TransUnion. And 30% expect to spend between $501 and $1,000. 

You may be expecting to spend more, less, or somewhere in the middle. But either way, it's important to set a budget before you shop if you don't want to end up with debt.

Make a list of the various people you need to buy gifts for, and then order it by priority. From there, look at your savings and checking account and see how much money you can afford to part with. 

Then, work your way down your list so that you're first spending on the people who are most important to you. If your cousins and uncles have to get a token $10 gift because you've maxed out on your budget on your siblings and parents, so be it. You can dress it up with a thoughtful note.

2. Pick up a side hustle

It's hard to save for the holidays in advance when other expenses monopolize your income. If you're short on spending money but don't want to end up in debt, a second job could be a good idea. And now may be a great time to pick one up.

Many businesses need extra hands on deck for the holiday shopping rush. Now, at this point, a lot of them might have extra staff already in place. But you never know when a seasonal worker might walk out or burn out, so it doesn't hurt to put in some inquiries around town.

And remember, there's always the gig economy. You can do anything from drive for a ride-hailing service to pick up other people's groceries for extra cash.

3. Book your Christmas travel ASAP

Christmas will be here before you know it. And the longer you wait to book your flight or rental car, the more you might end up paying.

If you're not sure how much time you can afford to take off, talk to your manager. They may be amenable to you working remotely for a few days during the holidays even if you normally have to report to an office. 

Remember, the week between Christmas and New Year's Day tends to be particularly slow in many industries. If that's the case for yours, you might get some leeway on when you can travel. And if you're able to return at a less peak time, you might save some money on your flight, leaving you with a smaller credit card balance to pay off.

Nobody wants to start off the new year with extra debt. Make these moves so you don't have to.