This Strategy Can Help You Avoid Overspending on Prime Day

This year's Prime Day shopping event will be here before you know it. You're not alone if you're excited to shop during the popular two-day sale. While it can be satisfying to score incredible deals, it's essential to keep your finances in mind as you fill up your virtual shopping cart. It's never a good idea to go into debt because of a discount because it can create ongoing financial struggles. I'll share a strategy below that may help you avoid overspending on Prime Day.

Start drafting your shopping list now

Prime Day 2023 will be held on July 11 and July 12. But that doesn't mean you can't get organized before the sale begins. When so many products are on sale, overspending can be easy if you're not careful. But you can stay on track by creating a shopping list.

Now is the perfect time to start thinking about what you intend to buy on Prime Day. As you draft your list, consider what items you've been hoping to purchase. If you can get an essential item at a discount during Prime Day, you can keep more money in your checking account.

Amazon has some early Prime Day deals available now, so you can use these sales to inspire you as you make a shopping list. You can also find plenty of Prime Day shopping guides online. When July 11 rolls around, ensure you have your shopping list nearby to serve as a guide.

How to avoid credit card debt while shopping online

Unfortunately, many Americans struggle with credit card debt. But it's possible to use credit cards without going into debt. As you charge your credit card on Prime Day, make sure you only spend what you can afford to pay off. By paying your entire credit card balance when your bill arrives, you can avoid paying credit card interest charges -- which can be costly.

One way to prepare for big purchases is to stash your extra money in a high-yield savings account. As your money sits in an account like this, you'll earn interest, which is like earning free money. By using money in your savings account to fund an online purchase, you can feel more confident knowing that your shopping decisions won't put you into debt.

Use a rewards credit card to earn cash back

Which credit card you use to pay for your Amazon purchases matters. Many shoppers use rewards credit cards to earn cash back and other rewards when they make everyday purchases. You're missing out if you're not using credit cards that offer rewards.

Some Amazon Prime members use the Prime Visa credit card to earn cash back while shopping on Amazon. Usually, this credit card earns 5% cash back on Amazon and Whole Foods purchases. But as a special Prime Day promotion, cardholders can earn 6% on Amazon and Whole Foods purchases made on July 11 and July 12. New cardholders that apply now can also score a limited-time $200 gift card upon approval, giving you a head start on your Prime Day shopping funds.

Want to earn rewards as you shop? Learn more by reviewing our list of the best cash back credit cards. For additional money-saving tips, check out our personal finance resources.