Advise Clients Away From Holiday Debt

It’s the beginning of the gift giving season and we’re all being bombarded with advertisements encouraging us to buy, buy, buy! It’s no wonder that the average amount of holiday debt in 2016 was a little over $1,000 and almost 60% of those holiday shoppers put the charges on their credit cards. If those folks made the minimum repayment of $25 a month, it would take them over 4 years to pay off that year’s holiday debt...and rates are only getting higher! Imagine how hard it is for someone in this position to purchase a vital life insurance policy.

This year, gift your clients with some budgeting advice to protect them from holiday debt. These tips could save them enough extra cash to fund a life insurance policy!

1. Set a personal boundary on who will get a present from you. Sometimes, those holiday ads work a little too well and you start to feel pressure to buy everyone you’ve ever met this year a gift. Like the old song goes: make a list and check it twice. Keep your list down to immediate family and 1-2 close friends.

1. Instead of spending money, spend time doing a meaningful activity. Gather your family to volunteer at a food bank, spend time reading to the elderly, or even help out at a local pet shelter. These experiences can bring more value to the season for you and your family, and they don’t cost you anything except your time.

1. In January, take advantage of sales on items you’ll need for next year’s festivities. You can save big on wrapping paper, cards, decorations, and other items before they receive a holiday markup in price next year.

*Source: http://www.magnifymoney.com/blog/featured/americans-holiday-debt-added-1003-average-year/