Holidays can be very stressful and fun at the same time. What most Singaporeans do is go shopping, relax or go out-of-town, and with these, it’s hard to monitor their credit all at the same time. However, that is the important thing. They have to monitor their credit score to know if it is still on the right track or to simply just know the updates or its status.
Often times, they will spend more than what they actually planned or want. This can run their credit if they don’t get to pay immediately and it may leave black marks on their credit report that will last for several years. What they have to do is check credit score regularly to prevent it from swaying, even during the holidays. Some 6 Reasons budget travelling Singaporeans overspends on holidays overseas are:
1. Not staying on budget
Many Singaporeans do not stay on a budget and do not avoid overspending when they’re going out to shop. They do not make sure they have a plan and if possible, list the things that they have to buy and keep it that way. Don’t stray. They buy stuff that is not on the list so they go out of their plan. They do not do a little research of the stuff that they are looking for to know where to get the best prices or deals. If they do not stay within their budget, they’ll not be able to pay for their credit every month, thus keeping their credit unhealthy.
2. Not planning ahead
Not planning ahead, they will find that the holidays aren’t so much about getting themselves into a six month hole of debt, and more about celebrating life with their friends and family. Have a great holiday season, and one that they won’t regret later. Their holiday season can be fun and debt free for everyone involved by celebrating the holidays on a budget.
3. Not Leaving their credit cards at home.
Many holiday buys are decided upon unexpectedly, and Singaporeans oftentimes feel that if they are putting the gifts on their credit card, they will not have to worry about the payment, at least for the moment. These types of purchases can really add up, and leave gaping holes in their holiday budget.
4. Not taking their time to compare shops
Not going to several different department stores to search for the best deal on an item that they are considering to purchasing can really result in expensive purchases. If one connected to the internet, it may be a good idea to let his/her fingers do the walking – shopping online can make it very easy to find the best deal on an item that they are considering. Sites like Google’s Froogle service give they ample opportunity to search for the best deals on whatever product they may be considering. But it is unfortunate that many Singaporeans do not consider this.
One of the largest areas of overspending during the holidays is, of course, on gifts. The number one reason many Singaporeans find themselves in debt after the holidays is not necessarily because they make purchases they can’t afford, but because they make all their purchases at once. Instead of consolidating their shopping to the overly-hectic holiday season, plan ahead and start accumulating gifts throughout the year.
Another big area of overspending by the Singaporeans during the holiday season oversees is on decorations and general ambiance a tree, ornaments, candles, lights, displays, table runners, tree skirts they name it and they can find it in a Christmas theme (and often at a significant mark up). The best way to avoid the temptation of going out and buying new decor every year, is to establish a sentimental value for these kinds of items. Have their children use finger paint to make the tree skirt, work together as a family to make everyone’s stockings, and save all the ornaments they’ve accumulated over the years. By creating and holding on to decorations that mean something special to their family, they’ll create their own tradition, and save big on buying new items that don’t mean anything to they.
And when they do need to pick up new decor items, take advantage of the deeply discounted post-holiday sales. Not only are these great resources for decor items, they’re also ideal for stocking up on other holiday necessities like wrapping paper, greeting cards, bows, ribbons, stockings, and most any other holiday-themed item they can imagine. And best of all, they’ll find them at clearance prices. With a little planning, creativity, and resourcefulness, they can have their fruit cake and eat it, too.