How do you pay for Christmas?

lgsdesigner · December 2014

A recent study showed that most people use credit cards, and get themselves in credit card debt to be able to afford Christmas. So-- I am putting it to the test with a poll. How do you pay for Christmas?

lgsdesigner · December 2014

I use my paycheck/freelance money. I refuse to get myself in debt with credit cards. Basically-- if I can't afford it, I don't buy it. Simple as that.

brose1117 · December 2014

I use my credit card but pay it off each month. All the points we are accumulating this holiday season will hopefully help towards a nice vacation.

RedCherry1109 · December 2014

Usually we use DH'S Christmas bonus but he switch jobs this year so we had to save up and use a paycheck this year. Starting in 2015 we will set money aside for Christmas. We also don't have CCs. We pay cash for everything!

Pintobean39 · December 2014

I'm kinda a SS. I use credit cards to pay for everything anyway because of points. Since I was a kid my mom made us put money away weekly with our allowance to buy Christmas gifts. I think it was called a Christmas club back then and it had a booklet where you tore out pages to make a deposit. Now I just put a little extra money in a savings monthly that is used to pay my credit card off if a larger expense every arises.

Unknown · December 2014

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mylittleladies1229 · December 2014

We use our southwest credit card for everything we purchase, then pay it off in entirety every month. Best way to get good credit and earn Plane tickets. My husband is a financial planner and would die before paying ridiculous cc interest.

Edit: words got deleted

lgsdesigner · December 2014

Next year, we plan to do the 52-Week Money Challenge. If you save like this all year starting Jan 1st (a little each week), you have $1,378 by the end. Pretty easy!

lakingsfan2015 · December 2014

We use my husband's Christmas bonus to pay the credit card we used to buy the presents (for the reward points) but we also buy with money from our savings for our shared big gift. This year we are getting hardwood floors installed downstairs and we actually saved for 3 months just for that.

jenanns · December 2014

I put bonus but I usually put it on a CC and pay it off with my bonus. My bonus is about the equivalent of one paycheck so I try to keep the gift spending around that mount but sometimes supplement a bit with regular pay.

beebe918 · December 2014

I chose SS: I make most of my Christmas presents.

My_Matt · December 2014

We pay cash for everything accept mortgage and cars. If we can't afford it, we don't buy it. Christmas is no different.

texasmama15 · December 2014

I put SS--just like lots of previous comments we use our credit cards for everything so that we get points and then just pay them off each month. We are fortunate in the fact that we've never had to use the credit cards for a reason of needing them vs just using them to gain flyer miles.

kac22 · December 2014

I put Christmas bonus but I'm a wedding photographer and at the end of every year I do "Christmas Mini Sessions" basically quick photos for people to use for their cards. I loathe it but love the extra money and it's pretty much how we pay for all of Christmas!

DH works for a major CC company so we obviously use CCs for everything for rewards though and pay off. Although we do have another card that we purposely keep a balance on because it's good for your credit

Unknown · December 2014

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OnceInLoveWithAmy · December 2014

I have a special Christmas/Birthday savings account that I tuck money into each month throughout the year. Then I hardcore stick to a budget.

MrsF0831 · December 2014

I said SS bc I do use cc but dont go in debt. I just pay off the balance when due. No interest here.

abbalish · December 2014

We use our credit cards but then pay it off each month. Usually it doesn't bother me but this year I find myself grumbling about it more than usual, since I know life is about to get a LOT more expensive pretty soon!

jarlea · December 2014

We use credits cards throughout the year, save up our points, and then use those points to pay for all our Christmas gifts. We usually earn about $500 a year in points, so our gifts are basically free!

Poppy715 · December 2014

We are terrible about putting money away each month for Christmas. It's going to be a major goal for 2015. We do a budget but e d up using bonus money and paychecks for Christmas each year. It's not ideal.

FreddyisReady · December 2014

We also use credit card, but pay it off every month. I chose credit card.

Pintobean39 · December 2014

kac22 said:
I put Christmas bonus but I'm a wedding photographer and at the end of every year I do "Christmas Mini Sessions" basically quick photos for people to use for their cards. I loathe it but love the extra money and it's pretty much how we pay for all of Christmas!

DH works for a major CC company so we obviously use CCs for everything for rewards though and pay off. Although we do have another card that we purposely keep a balance on because it's good for your credit

Keeping a balance on your credit card to help your credit is a myth. It's better to pay them off monthly.

ETA: not to mention paying interest, that's basically throwing money away.

blitzy23 · December 2014

We buy what we can afford. I don't believe Christmas should be about incurring debt, or spending savings. I often talk to friends and we just decide on not exchanging gifts, but rather going out to dinner and spending time together.

kac22 · December 2014

Pintobean39 said:

I put Christmas bonus but I'm a wedding photographer and at the end of every year I do "Christmas Mini Sessions" basically quick photos for people to use for their cards. I loathe it but love the extra money and it's pretty much how we pay for all of Christmas!

DH works for a major CC company so we obviously use CCs for everything for rewards though and pay off. Although we do have another card that we purposely keep a balance on because it's good for your credit
Keeping a balance on your credit card to help your credit is a myth. It's better to pay them off monthly. ETA: not to mention paying interest, that's basically throwing money away.

Definitely not a myth. It's good to have some type of "revolving" credit that shows you're capable of paying month to month and getting a balance down. Although, mortgages and car loans count toward this and are probably better for it especially because you'll have a much lower interest rate than most CCs.

Although, DH works for a CC company and the card we do have that revolves has a ridiculously low employee interest rate and we could pay it off any time we'd like so it doesn't bother me

j3nnyb3nny · December 2014

I chose pay check. If we don't have the money we don't buy it.
We have just bought a house and with the added expense of buying baby stuff DH and I aren't doing gifts for eachother this year. Just close friends and family.
We have restricted our family to a small budget this year and told them to not spend any more than X amount on us too.

chemmom1 · December 2014

I voted SS because I used credit cards, but am lucky enough to be in the position to pay them off in full every month. I only use credit for the bonus points.

Pintobean39 · December 2014

kac22 said:

Pintobean39 said:

kac22 said:
I put Christmas bonus but I'm a wedding photographer and at the end of every year I do "Christmas Mini Sessions" basically quick photos for people to use for their cards. I loathe it but love the extra money and it's pretty much how we pay for all of Christmas!

DH works for a major CC company so we obviously use CCs for everything for rewards though and pay off. Although we do have another card that we purposely keep a balance on because it's good for your credit

Keeping a balance on your credit card to help your credit is a myth. It's better to pay them off monthly.

ETA: not to mention paying interest, that's basically throwing money away.

Definitely not a myth. It's good to have some type of "revolving" credit that shows you're capable of paying month to month and getting a balance down. Although, mortgages and car loans count toward this and are probably better for it especially because you'll have a much lower interest rate than most CCs.

Although, DH works for a CC company and the card we do have that revolves has a ridiculously low employee interest rate and we could pay it off any time we'd like so it doesn't bother me

Right, having "revolving" credit does help your credit score. Most people have revolving credit in the form of a mortgage or a car note and it's more than enough that is needed to improve your credit score. It's not necessary to also have a credit card balance also because all you are doing is throwing money away to interest. People keep balances on credit cards because they have to but to do it to have revolving credit doesn't make good financial sense. That's just like I've seen clients go out and buy property or invest in something just to have a loss. It's not good financial sense to spend $100 to save $35 in taxes, your still throwing away $65. I've never understood this mentality.

In your case if you don't have other "revolving" credit and you get a really low interest rate it may be best for you. To make a blanket statement that it helps your credit score to keep a balance just isn't true. There is so much that goes into the calculation of the credit score. You can still have an A+ credit score without even having credit cards. Credit cards are just easier when establishing credit in the beginning when you have none because they will give them to just about anyone but they charge an outrageous interest rate because of that generally.

MAdams728 · December 2014

SS. We only use cash for gifts, and it's a combo of savings and a Christmas bonus.

kac22 · December 2014

Pintobean39 said:

Pintobean39 said:

I put Christmas bonus but I'm a wedding photographer and at the end of every year I do "Christmas Mini Sessions" basically quick photos for people to use for their cards. I loathe it but love the extra money and it's pretty much how we pay for all of Christmas!

DH works for a major CC company so we obviously use CCs for everything for rewards though and pay off. Although we do have another card that we purposely keep a balance on because it's good for your credit
Keeping a balance on your credit card to help your credit is a myth. It's better to pay them off monthly. ETA: not to mention paying interest, that's basically throwing money away.

Definitely not a myth. It's good to have some type of "revolving" credit that shows you're capable of paying month to month and getting a balance down. Although, mortgages and car loans count toward this and are probably better for it especially because you'll have a much lower interest rate than most CCs.

Although, DH works for a CC company and the card we do have that revolves has a ridiculously low employee interest rate and we could pay it off any time we'd like so it doesn't bother me
Right, having "revolving" credit does help your credit score. Most people have revolving credit in the form of a mortgage or a car note and it's more than enough that is needed to improve your credit score. It's not necessary to also have a credit card balance also because all you are doing is throwing money away to interest. People keep balances on credit cards because they have to but to do it to have revolving credit doesn't make good financial sense. That's just like I've seen clients go out and buy property or invest in something just to have a loss. It's not good financial sense to spend $100 to save $35 in taxes, your still throwing away $65. I've never understood this mentality. In your case if you don't have other "revolving" credit and you get a really low interest rate it may be best for you. To make a blanket statement that it helps your credit score to keep a balance just isn't true. There is so much that goes into the calculation of the credit score. You can still have an A+ credit score without even having credit cards. Credit cards are just easier when establishing credit in the beginning when you have none because they will give them to just about anyone but they charge an outrageous interest rate because of that generally.

You are totally right, I definitely should not have made a blanket statement especially considering like I said, mortgages and car loans are more than enough for revolving credit for most people.

DH used to dissect people's credit for a living a while back so we know a ton more than the average person on how credit scores and credit in general works.

Honestly, we probably don't need that revolving credit card for our credit score since we have cars and a house but as much as I'd like to think we're better than most people our age about credit and financial responsibility we sometimes can't help but give into the want it now mentality

CamoBride2010 · December 2014

I use a Christmas Club account. Ten dollars out of every paycheck is direct deposited into the account then come Oct. I get a check from the bank.

NanSee3 · December 2014

What does "SS" mean? Is there a thread on here that tells newbies like me what some of the acronyms are? We use savings to pay for Christmas. We have a couple credit cards but I'm not a big fan of the idea of them.

kac22 · December 2014

NanSee3 said:
What does "SS" mean? Is there a thread on here that tells newbies like me what some of the acronyms are? We use savings to pay for Christmas. We have a couple credit cards but I'm not a big fan of the idea of them.

Special snowflake aka you have a different answer then those provided.

At the top of this forum there's a "new to May 15" post. Check it and the blog out.

a316b · December 2014

I voted credit cards - but we don't acuumulate any debt. We use them mostly for conveneience and the points. We always pay off the entire balance every month.

alaw0729 · December 2014

I voted CC's but we put everything on the CC all month long to get the rewards dollars and pay it off every month. We both work some extra hours during the holiday season to pay it off.

melissak1q · December 2014

Cash, so paychecks.

CamoBride2010 · December 2014

shmeell25 said:

CamoBride2010 said:

I use a Christmas Club account. Ten dollars out of every paycheck is direct deposited into the account then come Oct. I get a check from the bank.

That sounds really useful. I'm not strict enough to move the money myself and not touch it!

That's why I set up our checking account to just move the money by itself on Friday

And with Christmas Club you can't touch the money until they send you a check in October. Well, I suppose you COULD close the account, but there is no way to just take a little here and there. That makes it nice for us because otherwise I might be tempted to use that money on something else (surprise bills or something). This way I'm guaranteed money for Christmas ( and we usually have some leftover to throw into savings!).

CamoBride2010 · December 2014

After reading about everyone using credit cards for the rewards I admit I'm a little jealous haha. I tried getting DH to do that a few years ago but he is super old school. We have regular old boring credit cards ( no rewards), which we only use in case of emergencies. But I love the idea of getting something back on money we are already spending.

lindsey85d · December 2014

We buy presents through out the year-especially in August when places have huge sales (like Toys R Us) to clear out inventory for seasonal items. We use our paycheck. No credit card debt here/and hopefully never will!