Your Money: To charge or not to charge this holiday season.
By Ashley Campbell acampbell@nbcaugusta.com
Story Published: Nov 26, 2008 at 6:38 PM EST
Story Updated: Nov 26, 2008 at 6:38 PM EST
Times are tough with today's economy.
With Christmas right around the corner you may be relying on credit cards to get you through the holiday season.
But that could be doing you more harm than good.
"Nobody has cash so they're using credit. Ya know, pay now, pay later," said shopper Sonia Johnson.
That's exactly what credit counselor Sheila Keels says people are doing this year.
"More people are using them because they don't have the money in hand because of the financial crunch that we're in," said Keels.
But is that a good idea?
Some say no.
"All it does is create a problem when you start using a lot of credit cards," shopper Ernest Drummings.
Keels agrees.
"All it takes is one late payment and it can send all their credit card interests up," said Keels.
Keels says with Christmas coming, the temptation to pull out those Visa's or Mastercard's gets greater.
"They've got children they need to buy Christmas gifts for. You can't tell a child no on Christmas morning," said Keels.
So, what can you do if you're one of those people, forced to charge?
Keels has a few suggestions
“If you're going to buy something on a credit card, pay it off when the bill comes," said Keels.
She also says if you have to break out the credit cards this holiday season, go to a store with low prices and great sales.
You could get the item a lot cheaper than what you could somewhere else.
When the bills roll in and you find yourself in a credit card crisis, Keels says to call your creditor, talk to them and they will usually work with you.
Something else to consider is not to max out your credit card.
Keels says you should only use a third of your card's credit limit.
For example, if you have a $600 limit, keep your balance at $200.
