It seems like just yesterday we were all baking in the summer sun, but now the holidays upon us! With the holiday season typically comes increased spending both for groceries and for gifts.

It’s too easy to swipe a credit card to cover those holiday costs, and think about it all later. And with all of the “specials” and “bonuses” that are offered, it’s even easier to be tempted into opening a new store credit card wherever you shop. We’ve all seen the offers: Open a store card now and save 10%!   Or, Apply now and receive this amazing free gift! What they don’t tell you on those fancy, shiny signs are the “strings” attached to those offers. Remember: any time you apply for credit, your credit score takes a hit. And that hit can be made even worse if you are declined credit.

If you are approved, your balance may be subject to extremely high interest rates, so even the 10% discount up front really ends up costing you more in the long run if you don’t immediately pay the entire bill off as soon as it comes. Not only that, but if your score takes a nosedive due to too many inquiries in a short timeframe, that could affect your ability to qualify for low rates in the future.

So the best plan for holiday spending is to make a plan to start with! Make a reasonable budget that works with your regular monthly budget. Try to spread out the spending as much as you can over time, and, as always, if you can’t pay for an item with cash, it may be best to skip on it and find a different option.

Happy Budgeting!