Suze Orman: 3 Things You Should Never Do When Buying Gifts This Holiday Season

Gabrielle Olya   Sat, December 7, 2024  GOBankingRates

The holiday shopping season tends to be an expensive one. This year, the average American plans to spend around $528 on holiday gifts — an amount that could be budget-blowing for some.  As many Americans are prepared to spend hundreds of dollars on gifts, money expert Suze Orman is cautioning against going financially overboard.

“Are you going to give yourself the best possible holiday gift this year? … I am talking about not overspending on gifts — when you spend more than you can afford out of a sense of love or obligation,” Orman wrote in a recent blog post.

“Stop it, right now,” she continued. “You need to put yourself in the equation. I want to remind you of one of my guiding principles: True generosity is when a gift is as kind to the giver as the recipient.”

With this in mind, Orman shared three things you should not do when buying gifts this holiday season.

Charging Gifts You Can’t Afford on a Credit Card

Buying gifts with a credit card can allow you to earn cash back or points, but it’s never a good idea to do so if you won’t be able to pay the balance in full.

“The average interest rate on credit cards right now is more than 22%,” Orman wrote. “That is painful just to write. It is insanely difficult — on top of expensive — to owe that much on an unpaid credit card balance.”

Using Buy Now, Pay Later

Americans are predicted to spend a record $18.5 billion using third-party buy now, pay later (BNPL) services for holiday purchases — an 11.4% increase from last year’s holiday season, according to Adobe Analytics. While using BNPL may be more popular than ever, Orman cautioned against utilizing these services.

“It’s common now when you arrive at the e-checkout for an online purchase to be offered what seems like such a nice deal: you don’t have to pay the full amount but can chunk it out into four interest-free payments,” Orman wrote. “I get the allure of these BNPL offers, but I think they can be dangerous traps.

TO READ MORE:  https://www.yahoo.com/finance/news/suze-orman-3-things-never-150009012.html