Avoid Credit Cards this Holiday Season

Christmas comes later next month and, for some, the ritual of running up a large credit card tab and spending the next year paying it off feels necessary. In this economy, however, and in the wake of changes to the Bankruptcy Abuse Prevention and Consumer Protection Act, we suggest re-thinking this strategy.

According to the new rules, debts to a single creditor totaling more than $550 for luxury goods or services can't be discharged in a bankruptcy. Should you find yourself in a tough spot after the holiday season -- so tough that you're forced to declare bankruptcy -- you might not be able to discharge credit card debt you've rung up for Christmas purchases. If you've accumulated thousands of dollars in Christmas credit card debt, you'll be paying it back no matter what.

Instead of relying on your credit cards this holiday season, instead try to save up enough money to do your Christmas shopping, or look into making your own gifts. The potential trouble over-spending could cause you down the line is not worth it.