Credit card debt

There are so many things that come along with the holidays, such as thanksgiving meals, Christmas dinner, gifts for the kids and loved ones, stuffing the stockings, but also traveling across the country just to see your long-distance families.

The list can go on nonstop. It can be hard to balance all of these expenses and still have some money left at the end of the month. Lots of families will automatically try to use credit cards to offset some of these costs, as credit cards might be a great tool for earning rewards and making expensive purchases.

However, you might want to reconsider before deciding to rack up your credit card debt, as the wide majority of credit cards have these APR (annual percentage rates) that are sky-high (around 20-30%).

Plus, if you don’t manage to fully pay your balance every month, you might expect to pay enormous interest rates on holiday purchases. That’s why those who prefer being a bit more frugal and budget ahead for their holiday expenses are usually able to buy things without paying enormous interest rates, and might still invest in their retirement and earn interest, instead of just paying it.