Santa Won’t Get You Out of Debt

Brent Pittman —  12/14/2011
Screaming Santa

Don't be left crying in January!

Many of you have finished your Christmas shopping, not me of course. That will have to wait till later. Some of you have already overspent more than your budget allows, haven’t you?

Don’t feel too bad. In the UK, 1 in 3 will go into debt this year due to Christmas spending, and 58% of that will be on credit cards. In the U.S. The average family will spend $646.00 on gifts this year (2011).

You even bought yourself a Christmas present too, didn’t you? I know you did, because that’s what Americans do. We buy stuff we don’t need with money we don’t have. Then we pay for it later, much later.

Santa will bring your kids gifts, but he won’t be around for the rest of year when the credit card statements start coming in January.

Let’s put this into numbers. Say you are average with buying $646.00 worth of Christmas gifts on credit cards at 14%. Your minimum payments will be $15 and it will take 61 months to be rid of that debt and you’ll pay an additional $256.74 in interest. Ho Ho Ho Merry Christmas!

Why not spend within your means for Christmas, so you won’t need debt coaching next year? The kids will just play with the boxes and wrapping paper anyway.

Better yet, try Advent Conspiracy and give relationally. Live a debt free Christmas

This year we are attempting to spend $167 on Christmas gifts. Why so little?

Well, that is what we saved up and we don’t want to spend our Emergency Fund or go into debt. I’ll post more on if we stayed in budget and how we did it for so little (don’t want to spoil any gifts).

(Photo by RaGardner4)

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Brent is a financial coach and writer looking for the perfect donut. He believes personal finance should be both fun and accessible to anyone willing to learn.