|WCSI Local News|
The holiday shopping season is underway and when it comes to money, a lot of people will throw away common sense about money and overspend.
Lisa Piercefield, a regional operations manager for Apprisen, says it's never a good idea to pile new debt onto old debt because it will cost credit cardholders more money with compounded interest. She says there are other ramifications of carrying debt over into the new year.
"Well if you are unable to pay your credit card, not only are you going to pay interest on top of interest from a balance that was carried over from the previous month, but not you have a whole new set of fees," Piercefield said. "So you're talking about the potential for late fees that could send you over the limit and that just causes balances on credit cards to grow to an unmanageable level."
Piercefield says this can also affect your credit in the future, take money away that you need for living expenses like rent and utilities, affect your home or car insurance and even get a job because it will show up on your credit report.
She says in order to prevent overspending, make a list and know who you are shopping for, what your shopping for, and how much you are going to spend on that person. Cash is something else Piercefield says you should consider using because once it's gone, you won't be able to spend anymore. And if you have to use a credit card, Piercefield says to only use one and keep your receipts in order to keep track of your spending. Also make sure that if you use a credit card, that the amount on it is able to be paid off when the bill comes in.
Last Updated: Friday, November 29, 2013 8:36:04 AM
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