Credit Card Holders Need To Shop Smarter For The Holiday Seasons

With the continuing economic crisis, the rising unemployment and the credit crisis, consumers are going to be less than thrilled to shop for the holidays. Credit cards used to be the backup plan for cash strapped consumers during the holiday seasons. This year, however, that may not be a smart move. Interest rates are up, fees are up, new fees are in, credit has been cut down and minimum monthly payment rates are up. It seems that consumers cannot get a break from the credit industry.

Still, the fact remains that this coming holidays, consumers will need some way to shop for their loved ones and for themselves, if only to remind them of better things than the on-going crisis. The key to surviving this year’s holiday season shopping is most likely shopping smarter.

One thing consumers can do is to shop earlier. Usually, when the holiday shopping season peaks, bargains can be harder to find, what with the increased demand. It is therefore a much better solution to shop earlier. For instance, fall items are probably on sail right now. Street festivals and holiday markets which come with the fall season are also great venues to find cheap but creative gifts. Black Friday is a popular practice among retailers. It is usually held on the day after Thanksgiving and, during this day, retailers usually offer very impressive discounts.

Given that credit is getting more and more expensive this year, it is probably best for consumers to shop with cash. Higher interest rates can bite back consumers who shop for the holidays and then find that they are unable to pay off their balance fully. There are also penalty fees to consider as well. Cash also has the unique advantage of keeping consumers aware of their budget. In particular, paying in cash usually keeps consumers aware of the rate that they are losing funds making them more cautious.

In fact, it might be a better idea to give cash this year. For those who are giving cash gifts to friends or loved ones, they might be in dire need of cash to pay off credit card debts or utility bills. Cash gifts might turn out to be budget savers and may be the best gift to give in this cash strapped times.

Considering the dire economic times, it might also be a good idea for consumers to pare down their gift giving list. The recession is still hurting a lot of people and it is quite understandable to gift less this year. For young adults and teenagers who are aware of the state of the economy, it can be a great way to teach them how to save. Younger children will be tougher, however and will require a bit more creativity from their parents.