Avoiding Debt and Other Financial Problems This December

Whether you are shopping for holiday gifts in Chicago or planning holiday travel to visit family or friends out of state, this can be one of the most expensive times of the year. Every year, Illinois residents spend thousands of dollars to buy Christmas presents, Hanukkah gifts, and other presents during the holiday season. In addition, many people also purchase plane tickets and pay for hotels during December, either as part of a family vacation or as a holiday necessity to spend time with loved ones. For many people, the amount of money they spend in December can lead to debt problems in the new year, and in some cases can lead Illinoisans to consider personal bankruptcy.
No matter how you look at the numbers, if you participate in the holiday season, you are likely to spend more money than you normally are accustomed to doing at other times of the year. A recent article from U.S. News & World Report provides some important tips for individuals and families alike to avoid financial stress during the month of December. We would like to highlight a couple of them for you here.
Obtain Your Credit Report and Understanding Your Credit Score
You might not immediately think to check your credit score when you are thinking about ways to save money this holiday season. However, as the article explains, it is important to be self-aware when it comes to your credit report and your credit score and what it likely means for your ability to secure credit at this point in time.
How can this help you to avoid unnecessary spending and to steer clear of holiday financial problems? The article suggests that “shoppers who are motivated to maintain or improve their score may find they are less likely to charge purchases or open new credit lines when holiday shopping.” In other words, if you know what your credit score is currently, and you recognize that it has room to improve, you may be encouraged to take steps not only to avoid damaging your credit, but in fact to improve it in the new year.
Decide Whether You Will Buy Gifts for Many People or for Just a Few
How many people in your life will receive gifts? The article suggests that consumers must decide whether to “go narrow and deep with gifts or wide and shallow.” Regardless of how you decide, make a physical list of everyone for whom you plan to purchase a gift. Then budget an amount for each. If you decide to “go narrow and deep,” meaning that you plan to buy gifts for only a select few, then you can spend more, or “go deep,” so to speak, for each person. If, however, you plan to “go wide and shallow,” then you should plan to spend much less on each person given that so many more are on your list.
What is the biggest risk in making your gift list? You do not want to “go wide and deep,” making a large list of gift recipients and spending too much money on each person. In most cases, the article argues, “when people try that approach, they almost always overspend what they can afford.”
Contact a Consumer Protection Lawyer in Oak Park
If you do end up overspending during the holidays and have questions or concerns about debt and bankruptcy, an experienced consumer protection attorney in Oak Park can help. Contact the Emerson Law Firm today to speak with a dedicated consumer advocate.
See Related Blog Posts:
Higher Rates of Personal Bankruptcy in Illinois

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