It’s the holiday season, the biggest shopping season of the whole year.  It’s this time that many Americans end up with thousands of dollars in credit card debt they cant afford to pay back.  Here are some reasons to avoid using your credit card while shopping for the holidays.

If you have a debt on your credit card now, you will only be adding to it.  You will spend more money with a credit card because there is no physical sign telling you to stop spending.  Try to avoid using your credit card and use some cash you have put aside for holiday shopping.  You will pay more with a credit card as well because you pay interest on balances that you carry for more than a month.  Also, if you already had a balance on your card, you won’t get a grace period.  Interest will start adding up quickly.  The New Year will come and you will be paying off debt from the holiday season.  During the holiday season, there is also a much higher risk of credit card fraud.  Leave your credit card at home and reduce the risk of someone stealing your card while shopping.  In February 2010, a credit card rule will stop credit card companies from raising rates on already existing balances.  Banks still have around 60 days once holiday shopping ends to raise your rates before the new rules take effect.  You could be paying much more than you expected.  You could be spending more than you can afford.  When holiday shopping, it is difficult to keep a tab of what you are buying.