When you use credit, you are living on money you expect to have in the future. If future expectations do not materialize, you may be unable to repay debts as scheduled. Using credit means extra costs. The finance charge is the most obvious cost. But lost interest on money that could have been saved is also a cost, as is the loss of a possible cash discount.
Charge cards can make the shopping more convenient but can be expensive.
The table below compares these costs. Make your list of expected Holiday expenses to include food, gifts, and travel. Decide before the Holidays how much you will spend. Stick to your plan. The best gifts are those that do not burden you with debt into the New Year.