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Gift Yourself a Debt-Free Holiday

Ever wonder why Elvis had a blue Christmas? Why Frosty the snowman was in such a hurry to leave town? Why the Grinch was so grumpy?

Maybe they were worried about Blue Monday. Landing on January 21 this year, it’s also called the “most depressing day of the year.” That may be because it’s the dead of winter, but it also happens to be right around the time holiday credit card bills arrive.

Consider this. If you buy $1,500 in gifts on credit this holiday and then pay only the minimum of $30 each month, guess what? It will take you till 2032 — 13 years — to pay off the balance, including $1,432.17 in interest. [1]

Even if you doubled your monthly payment, you’d still be on the hook for six years and $530 in interest.

Blue and grinchy, indeed. But it doesn’t have to be that way. Here are some tips on how to have a holly, jolly and less stressful gift-giving season.

Start Early, Early, Early

Overspending on last-minute gifts is the primary reason that budgets are blown. [2] Don’t be that crazed person racing through the mall on Christmas Eve. Challenge yourself to wrap it up by December 15.

Buy Yourself a Pre-paid Gift Card

It’s a smart way to cap your holiday spending. Set your dollar limit for gifts and then buy a prepaid general-use card in that amount. When it’s used up, you’re done. Some cards even qualify for rewards or a discount — a bonus for your thriftiness.

Layaway in a Manger

Go old-school to avoid credit debt and interest fees. Layaway — putting a down payment on an item and paying it off, interest free, over time — is popular again.

Join the Club

Ever hear of Christmas Club accounts? Invented during the Great Depression, these temporary savings accounts let you deposit money all year and then withdraw it at holiday time with no fees. Many credit unions still offer them. Or just create your own specialized savings account.

Guide Someone's Sleigh

Rudolph had the right idea — a temporary holiday gig in the shipping business. Why not pick up some extra cash to pad your Festivus gift fund? You don’t have to be a reindeer to find work in shipping over the holidays; check out local stores — retailers plan on hiring 500,000 seasonal workers this year. [3]

DIY Instead of IOU

The web is full of crafty projects, from apple jelly to wacky wreaths, that you can make at home. You’ll subtract big bucks from your Kwanzaa gift list while adding a lot of heart.

Finally, consider applying these saving and spending practices post-holiday season. The more you’re able to stash away by changing some simple lifestyle habits, the more you’re likely to have to spend on worthwhile experiences. alternative types of spending this holiday. Spend quality time with family and friends. Spend a Sunday volunteering at a soup kitchen. Spend a few moments in gratitude for the blessings of the year gone by. That’s the spending that gives you the most in return.

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[2]Here’s how long it will take Americans to pay off their Christmas debt. New York Post, January 3, 2018.


Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is an indirect, wholly-owned subsidiary of Guardian. Lifetime Financial Growth is not an affiliate or subsidiary of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Links to external sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.

2018-70533 Exp. 11/2020

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