We asked over social media if anyone had put Christmas purchases on a credit card, but is having a hard time paying it back. One person who does not wish to be identified told ValleyCentral that finances have been tight this year, but he still wanted to give back to loved ones.
Joe Califia, a wealth consultant for Independent Wealth Consultants in Edinburg said can understand why people are relying on credit cards more than usual, but that “overspending can be a big problem.”
Califia added that maxing out your credit card limits or going above the normal percentage of spending credit card companies set could hurt your credit score.
“These credit card agencies wanna see you using a reasonable amount of your credit limit. However, once you start overspending, that’s a red flag to them,” said Califa.
Califa commented if you find yourself struggling through holiday credit card debt right now, it’s not too early to save yourself from doing so again this Christmas. He said instead of waiting towards the end of the year to make holiday purchases to start buying gifts throughout the year.
