Arizona treasurer provides tips on how to avoid holiday debt

PHOENIX – Arizona Treasurer Kimberly Yee is encouraging gift buyers to make a plan and stick to it to avoid going into deep holiday debt.

“If you have a budget and you name each person for your list with a dollar amount next to their name, you can stay on point with your budget,” Yee told KTAR News 92.3 FM’s Arizona’s Morning News on Tuesday.

While many Americans are still paying off their holiday debt from 2023, Yee said it doesn’t have to be that way.

How to avoid holiday debt

One of the state treasurer’s tips for staying out of the red is to avoid “buy now, pay later” programs.

“Those can get you into trouble with interests that can be over 15%,” she explained.

Yee said it’s also preferable to pay with cash instead of credit cards, when possible, “so that you can see the money go down as you spend it.”

“And, certainly, never spend more than you make, and that’s just a simple practice that you should use year round,” she added.

Get creative with gift buying

If you have a large family or a big friend group, Yee said there are fun ways to get into the gift-giving spirit without breaking the bank.

“Why don’t you choose a name of one of those friends so that you don’t have to buy a gift for every single member of that group?” she said. “And white elephant gift exchanges are always a fun thing to add and incorporate into the holiday.”

While it might be too late for 2024, Yee said another way to avoid holiday debt is to take advantage of discounts throughout the year and spread spending on presents across multiple paychecks.

“Then you don’t have to get into this crunch season when prices can go up and the inventory goes down,” she said.

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