The festive season is pretty much upon us, meaning we are entering the most expensive part of the year. It starts with the Thanksgiving celebrations, swiftly moving onto Christmas and the New Year. For parents and families, it means a lot of money will get spent throughout this season. Some of you may struggle to deal with this, leading to a January that’s extremely tight and worrying for your finances.
However, there could be a way for you to ease some of the financial distress; using a credit card. If you already have one, you might know the benefits of using it throughout the festive period. If not – or you have one but rarely use it – you are missing out on a few advantages that can really help your finances during this expensive time.
Why should you consider a credit card and how could it help you get through the costly festive season?
Delay your payments
First of all, credit cards help you delay your payments to a later date. When you buy something on your credit card, you usually don’t have to pay for it until at least a month later. Sometimes, depending on when it was bought and when your bill comes in, it could be two months before you need to pay for it. In essence, credit cards let you borrow money instead of using your own all in one go. It’ll let you buy expensive Christmas presents without seeing your bank balance decrease dramatically. As a result, you can plan better and find ways to budget and save so you can pay your bill in the future without it having a huge impact on your finances.
You can even use a credit card to split your payments. Pay for something using the card, but then make a payment to your credit card via your bank account. It means you pay off part of the purchase right away, leaving you with the remainder to worry about later on.
Protect your purchases
Another reason credit cards work well during Christmas is that your purchases are protected. This means that, if a company goes bust or fails to deliver your products, you can get your money back. It avoids situations where you are taken for granted and conned during the festive season, ensuring you never lose any money! When using a regular debit card, you don’t get the same level of protection against things like fraud.
Effectively, credit cards help you lighten the financial load while offering more protection. Nevertheless, it’s crucial that you understand what makes a good credit card. Sites like Compare Credit will help you look at the different options on the market, including things like interest rates and benefits. Some credit cards give you benefits or points that can be cashed in for rewards at different shops!
Lastly, you need to know the correct way of using a credit card. Don’t borrow too much money in one go, and always ensure you can pay your bill in full every month. This is the key that makes credit cards more reliable and safer than other loans; pay your bill in full and you receive no interest charges at all!