Avoiding Debt Holidays

Los Angeles bankruptcy lawyer - Christmas holidays shopping woman stress. Shopper holding christmas gifts stressed frustrated and screaming angry. Funny image of Asian / caucasian woman in santa hat and arms full of gifts. Isolated on white background.

The holidays generally means stretching your budget to the breaking point in order to get the perfect gift for your loved ones. For this reason, it is often considered the season of debt.

Many people end up overspending during this time of the year, causing financial pain entering the new year. What follows are some pitfalls to avoid this holiday season to avoid breaking the bank.

Don’t fall into the trap of holiday debt!

Just because something is part of a retailers Black Friday sale doesn’t mean you’re actually getting a bargain. Shop around before making an impulse buy.

Make sure you are aware of any benefits your credit card is offering, like extended warranty coverage, price protections, or purchase assurance coverage and take advantage of them.

Create a budget for yourself and stick to it! Using cash rather than credit can go a long way towards helping you appreciate every dollar that you spend according to studies.

Credit cards associated with retailers may sound great by offering you 20% off your purchase, but the high interest that comes with them should make you think long and hard about how valuable a new credit card really is.

Start your shopping early in order to avoid costly overnight shipping fees; otherwise, look for those retailers who offer free shipping during the holidays.

You should look into downloading apps which allow you to price-match gifts from different retailers so you always get the best price.

Bankruptcy Attorney in Los Angeles & Orange County

After mortgages, student loans, and auto loans, credit card debt is the largest source of debt. This may not seem impressive until you consider the fact that credit cards have the highest interest rates of any of the other sources by far—averaging more than 15%.

This means credit card debt is to be avoided at all costs. Those suffering under the burden of high credit card debt can spend years striving to make payments on the interest on purchases they’ve made, making it difficult to pay off other debt.

If this describes your situation, you should speak with a knowledgeable Los Angeles bankruptcy attorney who can advise you as to the potential benefits of declaring bankruptcy. While bankruptcy is far from the end of the world, you need to discuss whether it is the right option for you with a specialist.

Talk to Oaktree Law right away about your situation. We have helped countless individuals get out from under serious debt, so call us at (562) 219-2979 to set up an appointment today!