Are you READY for Holiday Spending?

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Holiday shopping is upon us, but before you dive in and start crossing items off that Santa list, take a step back and ask yourself ‘am I ready to take on new debt?’ For those that know they will be using credit cards and borrowing money to purchase gifts, evaluate your personal financial situation by circling the statements that most apply.

  1. I know how much I currently owe on each credit card.
  2. I am receiving collection calls and notices.
  3. I have money saved to pay cash for holiday expenses.
  4. I will be adding new debt on top of old debt if holiday expenses are charged.
  5. I have reviewed my credit report and score in the past 12 months
  6. I am near the maximum amount allowed on my lines of credit.
  7. I am current on my vehicle payment.
  8. I have applied for a payday loan, title loan or credit card cash advance in the past 12 months.
  9. I have savings in addition to that earmarked for holiday spending.
  10. I have overdrawn my checking account more than twice in the past 12 months.

If you answered true to all odd-numbered statement, you are in good financial shape to begin your holiday spending. On the other side, if you answered true to even-numbered statements use this quiz as a wake-up call to take action about your financial situation before it spirals out of control.

If you want to further discuss or are looking for guidance on your current financial situation, we are happy to support you in any way that we can.  Everyone deserves a happy holiday season; lets just get the money in order first.

Source: National Foundation for Credit Counseling. November 2014.