How to avoid overspending during the holiday shopping season

Ted Rossman, Senior Industry Analyst at Bankrate, joins TheStreet the share tips on how to avoid overspending during the holiday season.

Transcript

00:00Black Friday is right around the corner, and we're talking about retail credit cards.

00:04I'm wondering what kind of sense or what kind of tips do you have for consumers not to overspend on those credit cards?

00:14We're seeing a frugal lean to the holiday shopping season, which makes sense given all we've said about inflation and high interest rates.

00:23Most forecasts I see are for something like a 2% or 3% gain over last year's holiday sales.

00:28So it is a gain, and these numbers could easily be negative, but it is likely to be a gain more or less in line with inflation.

00:35We found that only one in four holiday shoppers plans to spend more than last year, a third plan to spend less, everybody else about the same.

00:44Now there's that perception versus reality thing again.

00:47I mean, it is possible that the overall average gets pulled up by higher spenders, or also even if you think you're spending about the same,

00:55inflation might mean that you're spending a bit more.

00:58A great savings strategy is to stack discounts.

01:01So the store promotions are going to be abundant this year.

01:04They've already started.

01:05Retailers are in a discounting mood.

01:07They're meeting the moment.

01:09Consumers are frugal.

01:10Retailers are delivering with discounts.

01:12And they started way back in early October.

01:14But don't stop there.

01:16So use the store promo.

01:17Combine it with the rewards credit card that you hopefully pay in full before interest hits.

01:22Maybe you also go through an online shopping portal, something like Rakuten or Shop Through Chase.

01:27That gives you bonus points.

01:29And you can combine that with these other strategies.

01:32One other good option are card-linked offers, those digital coupons like Amex offers, Chase offers, MyWellsFargo deals, things like that.

01:42Those are some good coupons that can also be combined with other savings methods.