Working on your seasonal shopping list? Here are some tips to help manage that spending:
Plan ahead and create a budget that you will monitor weekly. Make a minor allowance to go over your budget up to 5%.
You can use credit cards to take advantage of rewards, cashback and points which can be used for future purchases.
Monitor your credit card balances to regulate that they do not exceed 65-85% of your credit card credit limit. Ensuring you do not exceed this balance will prevent your credit score from being negatively effected hence a possible reduction in your score.
Some credit card companies start charging interest on the purchase date rather than offering 30 days no interest, be prepared and aware of these terms and conditions.
When possible pre-pay your credit card(s); this may still allow you to earn points, cash back and rewards without any additional interest costs.
Set up automatic minimum monthly required payments to reduce your interest charges, ensure you do not make late payments and keep your credit in good standing.
If the above is not an option of choice then ensure you are aware of each credit card payment cycle, 1 day late payment equals 30 day late payment depending on your required payment cycle.
Take advantage of Black Friday savings and consider using your credit card rewards to assist in the cost of purchases.
Many credit card companies offer extended warranty and extended return period options this is an added benefit.
Interest rate charges are lower on unsecured lines of credit, which can be beneficial when transferring credit card balances onto them to maximize interest savings immediately after purchases.
Be aware of bank accounts that charge extra for debit card monthly transactions, this can become costly if your local financial institution has your account set up for charges per withdrawal.
There are solutions to assist with increased debts during the holiday season, my next article will focus on the options.
May this season bring you and your loved ones joy, abundance and blessings.
Marisa Parise is a Mortgage Broker with over 30 years of experience in the financial industry. This Bolton based brokeris proud to use her established network of over 50 lenders to service her clients residential, industrial and commercial financing. This enables her to obtain customized products, competitive rates, flexible options, maximum pre-payment options and quick response times. Her extensive expertise can resolve any mortgage related inquiries and provide a clear understanding of best suited options. For your mortgage solutions Marisa Parise can be reached at firstname.lastname@example.org or 416-305-SAVE (7283) or learn more on her website MarisaMortgage.com