RIO GRANDE VALLEY, TX (ValleyCentral) – For some, shopping on vacation with credit cards is all about getting cash rewards in exchange for miles, but for others it’s always about buying miles. gifts without spending their own money right away.
We asked on social media if anyone has put any Christmas shopping on a credit card but is having trouble paying them back. One person who does not wish to be identified told ValleyCentral that finances are tight this year, but he still wants to give back to those close to him.
Joe Califia, wealth consultant for Independent Wealth Consultants in Edinburgh, said he could understand why people rely more than usual on credit cards, but that “overspending can be a big deal”.
Califia added that maximizing your credit card limits or exceeding the normal spending percentage set by credit card companies could hurt your credit score.
“These credit card companies want you to use a reasonable amount of your credit limit. However, once you start spending too much, it’s a wake-up call for them, ”Califa said.
It could also lead to a cash flow problem every month and a decent retirement fund.
Rolando J. Perez Jr., president and founder of Amicus Wealth Management at McAllen, said that in order to regain control of your hard-earned dollars, you need to create a budget. A budget creates “awareness of your spending.”
Perez Jr. suggests tackling cards with higher interest rates first, as they could be the biggest hurdles if they don’t get paid quickly.
It is also recommended to make small sacrifices. For example, if you spend $ 8 a day on lunch five days a week, that’s $ 40 a week and just over $ 2,000 a year.
Califa commented that if you find yourself in vacation credit card debt right now, it’s not too early to avoid having to do it again this Christmas. He said instead of waiting until the end of the year to do holiday shopping to start buying gifts throughout the year.
If you’re still not sure where to begin to pay off your credit card debt, there are financial advisers all over the valley including Borderline Financial, 956 Credit Repairs & Taxes, and Edward Jones – Financial Advisor: Alex Ambriz.