The simple fact of the matter is that before you run out and spend thousands of dollars on gifts for those closest to you, there are always a few key things to keep in mind.
Unless you have the luxury to pay for all of your purchases in cash, which statistically speaking you probably don't, you're probably looking towards your credit card(s) for financial stability this holiday season. While this is largely the reason they were invented in the first place, that doesn't mean that you shouldn't proceed with a certain degree of caution as the big day quickly approaches.
It's no secret that credit card debt has a tendency to stick around for a long time - but just how long are we talking, anyway? Luckily, our good, old friend "Mathematics" has the ability to take much of the guesswork out of the equation and can give you a pretty accurate idea of not only what you'll be dealing with, but how long you'll be dealing with it.
To keep Christmas happy, we recommend that you use the Credit Card Equation to see how long it will take to pay off the credit card debt. [CLICK HERE]
First, think about how much you can afford on a monthly basis to pay on your credit card. Got it? Now use the Credit Card Equation to see how long it will take you to pay it off. Unfortunately, credit card interest rates are very high. According to Lending Tree, the average credit card has an APR of over 20%. So, enter the payment you can afford, and your credit card's APR, and see how long it will take to pay for this Christmas. If it's longer than 12 months, you will be still be paying for THIS Christmas when NEXT Christmas comes around.
None of this is to say that you shouldn't run out and buy everyone in your life just the perfect gift to show them how much they really mean to you. Giving gifts is a great thing and making someone's day a little bit brighter with the right show of affection is really what the holiday season is all about.
None of this should come at the expense of your own happiness, however, which is exactly what might happen if you let that little Santa that lives inside us all get carried away down at the shopping mall. Santa ultimately doesn't care about things like credit card equations or compounded interest - all he cares about is getting all of those wonderful toys out to the children of the world.
So when you're still paying off your purchases from this Christmas when NEXT Thanksgiving rolls around, remember that Santa's own personal brand of financial advice is probably best taken with a grain of salt.