‘Tis the season to be jolly, so they say, but buying Christmas presents isn’t exactly my idea of a good time.

Call me Scrooge, if you must, but I’m not alone on that front, which is just part of why so many people end up in a mad gift-buying dash in the days leading up to December 25.

No judgement from my side there, but doing that could easily result in an unhealthy bout of overspending.

As South Africa’s credit regulators will tell you, we’re not great at managing credit cards, and Old Mutual will back them up on that front.

In order to try and avoid falling into the debt trap, here are some prudent tips via SAT:

Make a shopping list

Write down the list of people you plan on buying gifts for. Critically consider who should be on your gift list and don’t be afraid to trim it. Start with your immediate family and close friends, and selectively add to your list from there.

In other words, be ruthless. That friend you promise to meet for a drink, but never actually get around to seeing? Axed.

Set a spending limit

Many people overspend on Christmas gifts by letting their emotions get the best of them. It’s easy to feel guilty when it comes to holiday spending. Do you need to spend $50 on every one of your nieces and nephews? Definitely not.

Figure out the total amount of money you want to spend on presents, and divide it up among each person on your list.

If you’re working with a ballpark figure for each gift, and you stick to it, you won’t get stung when you tally up the final cost.

Pay in cash

The easiest way to not go into debt is to use cash instead of credit to buy gifts. You’ll be forced to stick to your budget. When you use a credit card, it’s way too easy to lose track of how much you’ve spent and on who. Plus, an extra $10-$15 here and there go unnoticed but add up quickly.

This one is a biggie, because as we have mentioned before, South Africans tend to struggle with credit card debt. You might get a good deal on the sales price when you buy something, but months down the line the interest accrued leaves a real sting in the tail.

Alternatively, you could also make use of a zero-interest payment solutions like PayJustNow, which is proving very popular. This solution offers South African consumers an alternative to credit in the form of a dynamic tech-enabled payment solution, based on a widely used and internationally validated ‘buy now, pay later’ business model.

Put simply, the payment option allows shoppers to split their purchase over three equal instalments, spread over three months, with zero interest.

There are none of those hidden fees that can sneak up on you down the line, either. It really is that simple.

The extensive list of stores that accept PayJustNow as a payment solution includes the likes of Veldskoen and Freedom of Movement, and there is something for every taste.

Shop by yourself

If you shop alone, you’ll likely spend less money, especially if you have friends with poor money habits. A shopping partner in crime can distract you from your plan by convincing you to buy something unplanned and unnecessary.

This one applies largely to those who manage fine on their own, but can have a rubber arm twisted by a pal. If you tend to spend recklessly, consider taking along a friend who is a little more fiscally responsible, and might be able to reign you in.

That’s a true test of friendship right there.

Buy a combined gift

You can save money while still giving great gifts by giving a slightly more expensive gift to two or more people instead of buying individual gifts for every person.

I am a firm believer in this one, and it rings especially true around this time of the year. Rather than buying two cheaper gifts that end up gathering dust and taking up vital storage space in somebody’s home, buy a combined gift that a couple (or siblings) can enjoy together.

Better yet, see if you can find an experience that both enjoy, and find some way to incorporate that into your gift.

Whatever and whoever you’re spending your money on, we hope you spend it wisely and manage to keep yourself out of that dreaded credit trap this time of year.

[source:sat]