The holiday season has arrived. Many of us will be using our credit cards to make a purchase. Even though using your credit card can be convenient, there are a number of traps that you will need to avoid. The most important thing that you can do is avoid going into debt or adding more debt.
It is easier to avoid debt when you set a budget. Write down a list of all of your holiday expenses. Set a maximum amount of money that you want to spend for each. If you have extra cash, then it is a good idea to use your cash instead of a credit card.
Another mistake that you want to avoid is forgetting to take advantage of your credit card perks. Some credit cards allow you to get cashback bonuses. Check your account to make sure that you have opted into the rewards.
It is estimated that 100 million people in America travel during the holidays. If you have a travel card, then you should definitely consider using one. Travel credit cards come with the following trip cancellation insurance, lost-luggage reimbursement, travel accident insurance, trip cancellation insurance and auto-rental collision insurance. That is why it pays to use a travel credit card. Holiday cancellations and delays do happen, but fortunately, it will be easier to deal with the unexpected if you are covered.