How to Buy Gifts When You're Rebuilding Credit

[Apr 16, 2008.]

If you're trying to pay down some debts, the prospect of giving someone else a gift becomes a stressful thought. You want to give gifts as you always have, but you also want to save your money in order to boost your credit score. What you need to do is start to adjust your gift giving habits, rather than eliminating them. You simply need to look at gift giving a bit differently than you have in the past.

One of the first things you will want to do is make a list of all of the gift giving occasions for the year. This means birthdays, holidays, weddings, etc. Try to get a comprehensive list of these occasions so that you know what you need to budget for. With this list, you're going to start buying gifts now in order to both have them ready for the occasions as well as buy them at lower prices.

A great strategy for buying gifts on a budget is to make sure that you're always looking at the clearance racks when you're out shopping for essential items. You might find a lovely picture frame or a collectible book that’s drastically marked down, but will be perfect for a certain occasion that is coming up. You may even want to buy multiples of things that are a good price as well as applicable to the occasion. For example, bookstores often have markdown racks of books that didn't sell well or were over-ordered. These books are usually very inexpensive and make a great Christmas gift, stocking stuffer, or even birthday present.

This kind of buying means that you’ll be looking for gifts year round, which also saves you time and frustration during peak shopping times. By accumulating Christmas presents, for example, over the course of a year, you don’t have to scramble for gifts as the day comes closer, nor will you have to pay higher prices, geared toward 'catching' last minute shoppers. Of course, once Christmas is over and the post-Christmas sales have begun, you can start shopping for next year.

If you’re really looking to cut back on your spending during the holidays for other occasions, you may also want to talk with the people that you normally exchange gifts with. Consider selecting one person’s name for the year, instead of buying something for everyone. Or you can promise to take each other out for a dinner instead of buying an expensive gift. You may be surprised to find out that your friend or family member was trying to cut back on spending as well, so it works out for the both of you.

Another idea is to give to charitable causes, which is tax deductible for you, and a thoughtful gift for someone else. By contributing a small amount to a charity, you will help that organization, plus be able to donate the money in the recipient’s name. The amount is not important either, so long as you choose a cause that the recipient would be happy to support.

The truth is that most of us really don't need anything when it comes to our birthday or another holiday. So receiving a smaller token is just as nice as something expensive and extravagant.

More Information:

• Credit Repair Does Not Begin with Transferring Balances
  If you find that your current credit care statements are overwhelming, those balance transfer offers that you receive in the mail can become quite tempting. Their offers of lower interest rates as well as a chance to lower your monthly minimum fees can seem like a relief.


• Tricks to Curb Excessive Spending
  You already know this: you're probably spending more than you should be. And you're not alone. Nearly 60% of all Americans are carrying some form of debt, which means that more people than ever are living beyond their means and damaging their credit in the process.


• Making a Budget You Can Actually Stick To
  The truth is that you already know that your spending habits are the primary cause of your credit rebuilding problems. But when you've looked for advice elsewhere, all you’ve seen are unrealistic ways to budget, causing you to forgo eating to pay off your debts.


• Living Cheaply When You're Rebuilding Your Credit
  The fact of the matter is that when you’re trying to rebuild your credit, you're going to need to make some changes in your life. This will mean that you need to adjust your current spending habits in order to start paying down the debts that you have, as well as start looking for ways to live within your means for the rest of your life.