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The Dangers of Overspending for The Holidays in San Mateo

Ed Hsu Feb. 15, 2023

As the holidays approach, many Americans feel obligated to spend more and buy more. This is a dangerous practice that can lead to financial problems in the future. In this blog post, we will discuss some of the dangers of overspending for the holidays in San Mateo and how you can avoid them!

The Dangers of Overspending for The Holidays in San Mateo

A recent study by Affirm pointed out that 7 out of 10 Americans typically overspend during the holidays. And, nearly half of American consumers plan to spend more this year to make up for missed celebrations due to the pandemic.

This points to the undisputed fact that overspending is likely this holiday season, but can be avoided. Just being aware of reasons that cause a person to overspend on holidays is a start. Here are some of them:

  • Stressful daily lives have made us a society looking for short-term gratification. Having a Christmas tree packed with beautiful gifts underneath makes us feel good and fulfilled.  At least in the short term!

  • Wealth inequality can also cause a person to overspend on the holidays because they feel pressure from their peers. This is when being “behind” in gifts can lead someone into spending more than usual just so that they can catch up with what others are doing this holiday season.

  • In some cases, even if you set out to spend a certain amount of money on gifts, you might find yourself spending more than planned. This is because we live in an extremely consumer-driven society and holiday sales are everywhere we look!

If overspending is such a likely risk, how do you deal with it? One of the best things to do is to make yourself intimately aware of your financial situation. Knowing where you stand, financially, can help you make more informed decisions, allowing you to plan a holiday that better suits your bank account.

Long-Term Consequences Of Overspending

Overspending has long-term consequences that can go beyond the financial. Overspending leads to stress, which leads to poorer health and relationships. It also reduces your ability to save for emergencies or retirement. The mental costs are just as important when you consider if spending more is worth it in the short term.

Excessive overspending can leave you with a large amount of debt and this in turn leads to the following possible consequences:

  • Diminished borrowing power in the future

  • Lower credit score

  • Reduced buying power

  • Bankruptcy, which is the most severe consequence with serious ramifications for you and your family for years to come

How to Avoid Overspending These Holidays

With the holidays around the corner, you might be wondering what to do this time to make sure you don’t overspend. Here is a short list of some of the best things to do to make sure you enjoy your holidays without having to suffer for them in the longer run:

  • Know Your Financial Situation: Make yourself thoroughly aware of how much money you have and what the necessary expenditure is, thereby getting a clear picture of the finances available to you.

  • Set A Budget: Based on your assessment of your financial situation, decide on a practical budget for your holiday. Knowing the overall total limit of what you cannot exceed will help you better divide your expenses across your holiday activities.

  • Get A Clear Picture Of Your Expenses: Identify all the expenses you will be incurring on your holiday. Build a list of the people you will buy for and spend time researching the best gift for them that you can afford.

  • Look Up Deals: To ensure you get the most value-for-money experience, find promotions and deals for the items you plan to purchase. That can help reduce the strain on your expenditure while allowing you to give the best present possible.

  • Track Your Spending:  Keep meticulous records on all aspects of your spending.  Seeing the numbers can help guide you toward thoughtful spending and eliminate the big bill at the end of the holiday season.

  • Use Your Credit Card Cautiously: Credit cards are the biggest contributors to overspending. Try to use them conservatively, use travel cards, or hard cash specifically reserved for spending on the holiday.

If Facing Bankruptcy, Why Choose Us

While we hope our tips on avoiding overspending on holidays help you stay financially safe and solvent these holidays, the ugly reality is that sometimes there is no escaping the very severe circumstance of bankruptcy. 

It is an emotionally, financially, and personally challenging experience, one we are sure nobody wants to go through. However, if and when faced with bankruptcy, the one thing that can make the whole difference of what your experience is like, is the people you hire for the job.

With us, you get several key benefits:

  • We are well-versed in both the Chapter 7 and Chapter 13 bankruptcy, which are the most common types of bankruptcy filed. Our expertise in both Chapters means we are well-equipped to inform you on which one is the right option for your particular situation and can then file it for you.

  • Our experienced team of professionals delivers quality service, customized to your needs. We take the burden and responsibility of filing for bankruptcy completely off of you to allow you to focus on yourself.  By working with our trained staff, you can rest assured that all the steps, documents, and requirements are properly taken care of and your case is dealt with as much efficiency and effectiveness as possible.

  • We understand how challenging a time this may be for you, which is why we endeavor to make this process as hassle-free, smooth, and easy for you as possible.

  • We have the online reviews and testimonials to back our claim of offering superior quality of service to our clients.

  • We offer quality, customized service at some of the most affordable rates in the market.

We wish all the best this holiday season.  But, if you find you need the help of professionals to consider your financial situation, then do not hesitate to contact us. The sooner you get in touch with us, the sooner we can relieve you of this burden…and we promise to stay with you every step of the way until we have delivered the desired results to you.