The holidays are here.
Time to start thinking about the ones we love and shower them with gifts.
However, you may want to rethink the way you spend during the holidays.
Your spending habits could have a big impact on your credit score and the amount of debt you have.
One of the best things about shopping and the holiday season are the number of sales that take place.
Save 25% here, 10% there or maybe you get a good rebate on a high ticket item like a new TV.
Just put it all on a credit card or open up a new account and save an additional 10%! This should all sound familiar.
During the holiday season we are bombarded with advertisements and sales pitches that will only increase our debt if we don't have the cash to pay and decide to purchase.
All of the holiday spending we do can have a significantly negative affect not only on our debt, but also on our future debt because of increased interest rates.
The fact is extending the amount you owe in relation to how much credit you have is bad for your credit score and a shopping spree can significantly reduce your credit score.
Opening up new credit can also negatively affect your credit score.
The reasons are that both situations show lenders that you might be over extended and are accumulating more debt or opening up new credit to compensate for this.
If you already have debt, this can be a particularly negative.
Remember this year while you're out and about shopping, don't show your love by overspending.
In the long run, taking care of your financial future will go a long way in showing others you care about them.