After filing Chapter 7 Bankruptcy, a person will lose his or her credit cards. While it is possible to rebuild credit following a bankruptcy, Forbes suggests that there are ways to live without a credit card.
When you have months to prepare, this is true for the holiday season as well. Here is how you can prepare for the holidays without the use of a credit card.
Earn rewards
Many people rely on credit cards for their rewards systems. Did you know that retail stores often provide rewards systems too? If you shop regularly at different retailers, investigate membership and reward programs. You can stock up on points throughout the year and use said points to help with Christmas gifts. Loyalty programs can help provide you with discounts on food and travel. Most of these programs do not require you to have a credit card.
Create a budget
Your holiday budget can begin in the summer before the holiday season. Budgets are important for financial management. Without a credit card, they are even more important. The holidays involve several expenses, explains NBC News including:
- Gifts
- Food
- Clothes
- Decor
It is easy to overspend on all these items. You need a tight budget to refrain from relying on credit cards. Create a list of items months in advance. Begin to pay for some of those items ahead of time. For instance, you can collect stamps all year round. You can purchase some gifts as early as the summer. Put aside money for expenses that you know are inevitable and for any extras that may come up.
