9 ways to save money and avoid debt this Black Friday

As retailers roll out deals earlier and break sales records year after year, Black Friday can seem more like an entire season than a single shopping day. And many Americans are already gearing up for Black Friday and Cyber Monday as they tackle their holiday shopping lists.

On average, Americans are planning to spend about $900 each this holiday season on gifts, decorations, and more, according to a 2024 National Retail Federation survey. But bigger sales and more enticing offers don’t have to result in an empty bank account come January.

Whether you’re heading to your local shopping mall for in-store doorbusters or fine-tuning your online wishlist, having a financial plan ready can help you avoid overspending this year — especially if you’re using a credit card.

Here are a few things to keep in mind so you can avoid debt and save money this Black Friday and beyond.

You should have at least some number to guide your spending before heading out this Black Friday. Maybe it’s the total you’ve already set aside in savings throughout the year for holiday shopping or simply a portion of your normal budget.

You could approach the Black Friday weekend with an overall budget in mind — such as a total of $500 allocated to spending. Or, you may want to break it up into more specific subcategories. If your main goal is to cross off the majority of your gift list, maybe you’ll allocate $400 of that to gifts while reserving $100 for any great deals you come across for yourself.

Take a look back at last year’s spending to help you budget better this year, too. Review your old statements and receipts. Were you satisfied with the amount you spent, or are there items you wouldn’t repurchase?

Online and in-store retailers alike may bombard you with the latest deals and greatest merchandise, but making a game plan before you shop can help you avoid falling prey.

Nearly every big box retailer and plenty of smaller merchants release their best Black Friday or Cyber Monday deals in the weeks leading up to the big shopping days. Use these to find savings on the items you need and make your shopping list early. And don’t forget to look for roundups online cataloging the year’s best discounts.

Read more: Black Friday 2024 deals: Shop the best sales from Amazon, Target, Walmart, Wayfair and more

If you’re unsure whether you’ll be able to pay down your balance in full by the time your monthly payment is due, a card with a 0% APR introductory offer for new purchases could be worth considering.

Just remember: You will still need to pay your purchases off in full by the time the intro period ends. Otherwise, you’ll start to accrue interest at the standard APR, just like any other credit card.

Here are a few top 0% APR offers available today:

Read more: Best 0% APR credit cards for 2024

0% APR cards can be risky if you tend to overspend during the holiday season. If a new credit card is only going to encourage you to spend more than you otherwise would, it may not be worth it. But if you have your spending and budget planned out, and know you can pay off the balance over the next several months, a new 0% APR balance transfer card could offer a way to avoid debt this season.

Everyone — but especially cardholders with existing debt — would probably benefit from fewer emails flooding their inboxes about deals and discounts around the holidays.

If you already have credit card balances that are accruing high interest rates, consider whether Black Friday shopping is a good idea this year. Instead, reward yourself by making an extra payment toward your balances.

Consider using a cash-only method for holiday shopping. Withdraw only the amount of cash you can spend on gifts and other purchases, and leave your credit cards at home. And if you haven’t already developed a debt payoff plan, start getting ahead of the issue now.

Credit card rewards can offer a big boost to your holiday shopping savings — as long as you spend only what you can afford to pay when your bill is due.

If you’re in the market for a new credit card and have an increased budget for Black Friday weekend, you may want to take advantage and work toward a high-value sign-up bonus. Here are just a few examples of rewards credit cards you can benefit from over the big shopping week ahead — and also pair well with everyday spending.

Read more: Best rewards cards for 2024

Don’t stop your search for sale prices with retailer discounts. Before you shop, there are plenty of other opportunities to find deals.

If you’re shopping online, consider downloading browser extensions that can scour the internet for coupons and cash-back offers you may qualify for. In-store, Black Friday retailers may price match discounts elsewhere, helping you save the difference at checkout.

If you have an eye on something, start watching prices now or set up a price alert notification. Knowing what regular prices are in the weeks leading up to a big sale can help you decide whether the discounted price is actually worth it later.

Many credit cards provide benefits that can protect eligible purchases in case of accidental damage or theft. In some cases, you might also be able to receive reimbursement if a merchant won’t accept an item for return. These perks could be especially useful if you plan on making expensive holiday purchases, such as a phone or other big-ticket item.

Here are some protection benefits to look out for when considering different types of credit cards (note that specific benefits can vary by card and card issuer):

• Purchase protection: Covers eligible new purchases against damage or theft.

• Extended warranty coverage: Provides additional warranty coverage to eligible purchases with existing manufacturer’s warranties.

• Cell phone protection: Covers eligible cell phones (on plans paid for by your applicable card) against damage or theft.

• Return protection: Provides reimbursement for eligible new purchases if the retailer won’t allow you to return them.

Turn your increased spending during the holidays to good use by earning a credit card welcome bonus on purchases you’re already making. Considering many sign-up bonuses require spending thousands of dollars over the course of a few months, this could be the ideal time of year to align increased spending with earning loads of cash back, points, or miles.

Here are a few cards offering generous welcome bonuses:

Read more: Best credit card sign-up bonuses for 2024

It’s common for credit card issuers like American Express, Chase, and Citi to provide targeted shopping offers to their cardholders. These offers vary, but they generally provide a discount if you make an eligible purchase from a specified retailer.

For example, you might see a Chase Offer in your online account for 15% cash back at Shake Shack or 10% back on a DoorDash order. To use the offer, add it to your account and then make the eligible purchase. There’s often a limit on how much you can save, so be sure to read the offer details carefully.

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.