Connect with us

Hi, what are you looking for?

Best Practices

How to Get Through the Holidays Without Going Broke

The holidays are supposed to be a happy time, but for too many people, the financial strain of travel and gift-giving can cause a great deal of stress. This year could be even worse than usual: The American Psychological Association’s 2017 Stress in America survey found that the U.S. is already at its highest stress level on record going into this holiday season. Yikes!

How to Get Through the Holidays Without Going Broke The holidays are supposed to be a happy time, but for too many people, the financial strain of travel and gift-giving can cause a great deal of stress. This year could be even worse than usual: The American Psychological Association’s 2017 Stress in America survey found that the U.S. is already at its highest stress level on record going into this holiday season. Yikes!

And with the recent revelation that too much holiday-themed music could be bad for your mental health, there’s even more good reason to protect yourself from extra stress this time of year.

While you may not be able to avoid hearing Rudolph the Red-Nosed Reindeer everywhere you go, you can minimize your money worries so you can relax and actually enjoy the holidays.

Be strategic with sales.

Holiday gifts aren’t getting any cheaper. According to a study from the National Retail Federation, consumers say they will spend an average of $967.13 this year, a 3.4% increase from last year. With the cost of gift-giving climbing so high, doorbuster sales can entice with the promise of steep savings. Make sure you do your homework to know what all the items on your shopping list cost, so you can differentiate a truly good deal from a poser bargain. Also, many black Friday deals include mail-in rebates. Don’t forget to mail them in!

Manage spending carefully.

According to new research from Elevate’s Center for the New Middle Class, almost 40 percent of Americans reported overspending on the holidays last year, in part due to chasing deals without first setting a strict budget. Setting a budget is arguably the single most important way to avoid getting in over your head during the holiday season. Don’t just make a budget, keep track of how you’re spending against that budget to ensure you don’t accidentally spend more than you’d planned.

Reprioritize spending.

While gift-giving is synonymous with the season, many families are now simplifying and focusing instead spending time with their loved ones. According to a study from Suntrust, almost 7 out of 10 people would give up giving gifts or exchanging gifts this holiday season if their friends and family agreed to it. A majority of respondents added that they would prefer instead to spend more time with their family and friends. This route can be a win-win for everyone.

Borrow intelligently.

As much as possible, it’s always advisable to use cash for purchases to avoid incurring interest charges, which can be particularly high with many credit cards. However, the reality is that sometimes people do need to borrow money throughout the holiday season either through credit cards or in-store financing options. If you find that you’ve already racked up more high-interest debt than you had planned on, there may be options to consolidate your debt at a lower rate with a personal loan through a marketplace like Prosper.

Financial worries don’t have to lead to a Griswald-style holiday meltdown. By planning ahead and being careful with spending, you can maintain the joy of the holiday season and stay on track to start the new year off on the right foot.

– Happy (and stress-free) holidays from your friends at Prosper!

Read more

Join our mailing list

Latest

Investor Center

Today we are sharing performance data from the Prosper Portfolio for September 2021. Highlights from the report include: Performance Update In September, approximately 67%...

Credit Management

The consumer finance sector is highly competitive, and consumers often have many options to transfer and repay debt. For example, credit card companies frequently...

Credit Management

For many families, homeownership is an investment for the future. Buying a home is the largest and longest financial commitment most of us will...

Investor Center

Today we are sharing performance data from the Prosper Portfolio for August 2021. Highlights from the report include: Performance Update In August, approximately 67%...

Credit Management

Today, we are excited to announce the release of our new eBook, Your Ultimate Guide to Debt Consolidation, which is now available to download...

Home Renovations

Home renovation can be a challenging process, but financing your renovation doesn’t have to be. There are many ways to fund your home improvements,...

You May Also Like

Credit Management

Unemployed and looking for ways to borrow money? We’ll reveal what options you have when it comes to accessing emergency loans with no job.

Best Practices

Even before COVID, expensive healthcare costs had many Americans wondering what happens if you don’t pay medical bills. If you’re struggling with medical bill...

Financial Literacy

Financial literacy is the know-how to manage your money and plan for your financial future. If you’re not entirely comfortable with money or aren’t...

Finance for Homeowners

Taking out a HELOC to pay off your mortgage is a common practice among many homeowners today. Read more to find out the pros...

© 2005-2021 Prosper Funding LLC. All rights reserved.