Tips to Avoid Gifting Debt

 _{By Bromwich+Smith Staff | 770 words | Reading Time: 3 minutes and 51 seconds | Last update: 2023/12/13}

Every year, we try to outdo our best, we search in stores and online for the perfect gift. Perhaps it is an extravagant and expensive item or maybe it is something sentimental, brimming with love. Regardless of the ultimate choice, there are a few suggestions we'd like to offer for this gifting season. 

Before purchasing, think of how the receiver of the gift will feel. Beyond the obvious excitement for the gift in the moment, think long term. What are the unexpected costs associated with the gift you are presenting? 

1. Pets: While a pet can be a heartwarming gift, it comes with a significant financial commitment. The recipient will need to cover expenses like pet food, veterinary care, grooming, training, and potential emergencies. The costs of caring for a pet can add up quickly and last for the pet's entire life. 

2. Experiences: Experience gifts like concert tickets, theme park passes, or vacation packages are wonderful, but they can come with additional expenses. The recipient may need to pay for travel, accommodations, parking, food, and other incidentals, turning what seemed like a gift into a substantial financial commitment. 

3. Gaming Consoles: Gifting a gaming console is exciting, but the recipient might not realize the hidden costs. Games, controllers, online subscriptions, and accessories can quickly add up, making gaming an ongoing expense. Many consoles do not come with games and you will need to consider batteries, chargers and all the extra items the receiver will need in order to use their gift. This could be a bigger commitment than you are prepared for as well! 

4. Subscriptions: Subscription services, such as streaming platforms or magazine subscriptions, are convenient gifts. However, the recipient may need to cover the monthly or yearly subscription fees, which can become a financial burden if they weren't prepared for it. With many subscription services requiring a credit card that automatically renews the services, it can be a costly expense if it is not cancelled in time. Not to mention the embarrassment if the receiver does not have the ability to put extra costs onto a credit card.  

5. Vehicles: Surprising someone with a car can be a grand gesture, but it comes with insurance, maintenance, and fuel costs. The recipient might not be financially prepared for these ongoing expenses. 

6. High-Maintenance Plants: Gifting exotic or high-maintenance plants can be a thoughtful gesture, but they may require specific care, which can lead to expenses in terms of specialized soil, fertilizers, and pest control. Perhaps, purchase a gift card and offer up a shopping day to pick out the items together which will help avoid over committing your loved one to a pricey long term plant if they aren’t prepared.  

7. Home Appliances: While a new home appliance can be a useful gift, it may come with higher utility bills or maintenance costs. For example, a larger fridge might consume more electricity, or a high-end coffee machine might require expensive coffee pods.  

8. Collectibles: Collectibles like rare coins, stamps, or art pieces can appreciate over time, but their value can also fluctuate. The recipient may need to invest in proper storage, insurance, or appraisals. If they are not already an avid collector you may want to reconsider starting a collection for them.  

9. Hobby Supplies: Encouraging a hobby with a gift, such as a musical instrument or art supplies, is great, but the ongoing costs for lessons, accessories, or materials can add up. 

10. Tech Gadgets: Gifting the latest tech gadget may require the recipient to buy accessories, apps, or services to fully utilize it, which can be unexpected expenses. 

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It's Always the Thought That Counts  

While we all aim to give gifts that will be appreciated, it's important to think beyond our own preferences and consider how the gift will impact the recipient. By taking the time to understand their situation, you can find that wow gift that doesn't leave your loved one with an unexpected bill after the holiday season. 

Follow us on social media and let us know what gift have you received that has cost you more than you expected? 

Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, Live Chat  or you can request a call back at contact us page. We want to see you flourish!