In Your Debt: 4 ways to limit your holiday debt

There’s a magical feeling in the air this time of year, but that magic costs money. Every year, the pressure looms large to spend more to create perfect holidays.

This high-cost season can leave you with debt that sticks around. According to NerdWallet’s 2022 Holiday Shopping Report, 31% of 2021 U.S. holiday shoppers who used a credit card to pay for gifts still haven’t paid off their balances.

With some planning, you may be able to avoid holiday debt. But if you go over budget and carry some credit card balances, there are ways to limit the damage to your finances.

1. START WITH A PLAN

Begin with your budget and gift list, along with a grocery list if you’re hosting any parties. Shopping apps and web browser extensions can make it easier to track price trends, compare pricing at different merchants, find coupon codes and earn cash back.

Online shopping can make it easier to overspend because of its convenience as well as improved user experiences on merchant websites.

“All of these different companies are trying to create the fastest, most friction-free way to purchase things,” says Emily Rassam, senior financial planner at Archer Investment Management in Charlotte, North Carolina. Rassam curbs the spending urge by adding items to her cart as she spots them but only reviewing what’s in the cart and making a final buying decision once a month. A little extra time between finding items and sitting down to buy them can make you second-guess your choices and then remove a few items from the cart.

2. WATCH OUT FOR SNEAKY COSTS

Don’t forget smaller details that add up, like decorations and gift wrap. Reuse what you can — anyone who keeps old gift bags in a closet, this is your time to shine. Rassam recommends looking for deep discounts on these items immediately after the...