Business people are usually money on the holiday season to maximize sales and profits. It is high time for them. They sell you the price and smile all the way to the bank. They know that people are less reticent about them, but at other times. Perhaps you could take those who suffered financially after the holiday stress, and ensure that it does not recur. Your success will depend on how you manage the three main factors: increased incidence of expenditure, how you finance that spending demands, and high financial following month.
Financing Plastic
During the Christmas and New Year seems to agree too early, people often feel they have saved enough money for their celebration. In addition, the budgeting of a foreign concept to them and the price could spiral out of control. To cover the inevitable lack of resources, the credit card is an obvious attraction. There are advantages to using the card for spending money:
i) It gives you access to credit in the month.
ii) It gives you a temporary option to delete your current path.
iii) It allows you to track your spending.
iv) You do not have to carry cash with you though.
Use a credit card, how ever, carries a significant risk if not tightly controlled. Studies suggest that spending could increase to 35% using a credit card vs. cash. Here are some key points to help protect against credit card debts running into trouble.
A. Spending Plan
If costs exceed revenues for the month of celebration, consider reducing fees or other fees meant happy in your income. I assume you have prepared a plan to pass the time. This is where the credit came to the rescue. Although it is not available, your credit card creates distortions in the management of your finances. Unless you track spending, both in money and credit, there is a risk you do not know if you live within your means. It would be good to start using a credit card if you do not have control over your finances, which means using the minimum investment.
2. Debt / income
Remember to use your credit card debt adds site. Manage your finances, a key indicator to watch the debt to income ratio. This is a monthly payment of debt as a percentage of your monthly income and raises a red flag when you tinker with too much debt. More than 20% can be unhealthy. If you have a credit card debt outstanding, not to develop it.
Three. Bridging Finance
Use your credit card is essentially a means of short-term financing for your actions. This provision means that all debts incurred to use the card in the coming days. Pay the minimum balance will not do. If you are not sure you can pay in full, you cut yourself a big favor by not using credit cards. If you decide to go ahead and use the card, you must be prepared for additional costs in interest and penalties associated with long-term credit. It adds to the cost, and you must be prepared to be prepared to cut other budget to accommodate them, otherwise you may create a hard-core debt
4. Total
debt credit card taken to the holiday season is typical for consumer spending to pay for holidays, buying gifts, entertainment, travel, etc and creates what is called consumer debt. This type of debt is increasing your debt, but nothing helps your property. capital is reduced to the extent that consumer debt incurred. property values decline are not good for economic health. So you find a very Merry Christmas. But as you go about it, finance it in a way that gives you the comfort that you will not be indebted months.
