And, with the holiday season coming to a close, there are several unsavory spending habits you need to watch out for.
While this may be the season to give, some people give out a little too much and put them in financial ruin. A $25 gift card for a friend may appear suddenly to be more after you add the fees and interest. However, if you want to stick to the budget and get your friend that gift card, you need to pay the card off immediately.
Everybody is doing some shopping. It begins with the candy at Halloween and carries on until the New Year’s Day celebration are over. And, not uncommonly, many people do a gym membership to carry out their New Year’s resolution to get fit. During this time, you may have been using your credit card. If so, keep an eye on your credit card statements and bank accounts. If you notice any issue, contact the financial institution to get those charges reversed and close the account to a new card.
Letting Someone Use Your Card
It’s not uncommon to let a spouse or adult child borrow the credit card for a short time to get things around the house that you need. However, this could be a bad thing. They may overspend, or they may accidentally leave the card behind when they’re not using to carrying it. If you let someone borrow the card, you may even be in violation of the credit card agreement. The charges may be difficult to reverse if you weren’t the one using the card.
Not Reviewing Your Credit
You’re allowed to look at your credit report at least once a year – perhaps quarterly (one from each bureau). However, since this is a busy season, many people put their responsibilities on the back burner to focus on other things. Doing this though can hurt your efforts to do a spring cleaning of your credit report. Consider looking over your credit at CreditKarma.com, which is free to sign up and gives you an idea of what your credit report is like.