From buy now, pay later to Venmo, here are 4 of the best ways to pay for holiday gifts

by | Nov 9, 2022 | Business

What you buy this holiday season is just as important as how you buy it.In fact, the payment method you choose at checkout can go a long way toward helping you stick to a budget, save money and stay out of debt.”The credit card is the gold standard in terms of rewards and buyers protections, but the interest rates are a huge drawback,” said Ted Rossman, senior industry analyst at Bankrate and Creditcards.com. “The biggest thing I would worry about is debt.”More from Personal Finance:Consumers are cutting back on gift buyingFree returns may soon be a thing of the pastAffluent shoppers embrace secondhand shoppingThe rising cost of living is straining household budgets just as the peak shopping season kicks into high gear. That can make paying with credit more appealing, but there may be other options that fit your needs even better.”It comes back to knowing yourself,” Rossman said.From credit cards to cash, installment buying and payment apps, here’s a breakdown of some of the best ways to pay this holiday.1. Credit cardsRapeepong Puttakumwong | Moment | Getty ImagesMost Americans rely on credit thanks to convenience, rewards and buyer protection programs. When it comes to holiday shopping, cashback or rewards cards offer an added bonus of 2% or more in certain categories.“If you have multiple cards in your wallet, use the one that will give you the most value in return on the purchases you’re making,” said Elly Szymanski, assistant vice president of credit card products at Navy Federal Credit Union. “For instance, a card that allows you to redeem rewards on your everyday spend for cash back, gift cards or merchandise may be your best bet for holiday shopping.” (CNBC’s Select has a full roundup of the best cards for holiday shopping.)If you’ve already banked rewards, this is a good time to cash them in, Szymanski added. “With many households looking to spend less this holiday season, one of the best ways to save is take advantage of the points and rewards you’ve accumulated over the course of the year by using your credit card.”Credit cards should only be used if you can pay them in full each month.Chelsie Mooredirector of wealth management solutions at Country FinancialHowever, credit card interest rates are at record highs and only heading higher as the Federal Reserve hikes rates i …

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