The unofficial start of the holiday shopping season has arrived. Thanks to Amazon’s Prime Big Deal Days and other retailers’ “early holiday” sales, shoppers don’t have to wait until Black Friday in November to start deal hunting. But a long shopping season can lead to a lot of spending — and debt.
Nearly 3 in 10 Americans who used credit cards to pay for holiday gifts last year (28%) still haven’t paid off their balances, according to a 2024 Holiday Spending Report from NerdWallet.
Creating a budget, building up your savings and comparing prices are some strategies you can use to avoid spending more than you can afford.
Use earmarked funds
Putting money in a special savings account or envelope just for holiday expenses reduces the risk of going into debt. You’ll have funds ready when it comes time to shop.
“Ideally, people should begin saving for the holidays as early as January,” Los Angeles-based certified financial planner Cynthia …