Billy Florence - Staying Debt-Free This Season
American shoppers are intent on continuing their trend toward using more cash and debit cards for holiday purchases rather than relying totally on credit cards. Credit card spending was up last holiday shopping season. According to VISA, holiday spending on their cards last year totaled $257 billion, an increase of 17.5 percent over last season.
Experts offer specific steps to avoid a New Year spending spree hang over. They advise holiday shoppers to set a firm budget, followed by planning each individual purchase and subtracting each purchase from your budget total. If December brings big budget pressure, they suggest increasing gift creativity rather than increasing spending. Trimming the gift list can also provide some financial relief. Consider these six tips for avoiding a financial pinch in the New Year.
SIX TIPS FOR A DEBT FREE HOLIDAY SEASON
1. Set Budget Write Shopping Plan
Determine how much you can reasonably spend this holiday. That should be your maximum amount. Then determine how much of that total you will spend on each individual.
2. Track and Trim
Track your expenses and spending as you go. Waiting until January when you get the credit card statement is too late to avoid unnecessary debt. If you are spending more on family members than you planned, consider trimming that gift list. Replacing a quickly purchased gift with a personal letter tucked in a card may be just the right solution for you and the recipient.
3. Shop Online
Wise online shopping can save you time, gas money, and the aggravation of crowded stores and parking a mile from the building. You can enjoy windows and displays without parting with your hard earned cash. If you do shop online during December, make your credit card “pay off plan.” The National Retail Federation says most of us will spend $800 for the holidays. If you charge that $800 dollars and are only paying the minimum monthly installment, it could take more than 10 years to pay it off. And the credit card company will make more than $1,000 in interest and fees.
4. Get Creative
Gifts that say “personal touch” created by you are the ones most often enthusiastically consumed or lovingly wrapped in tissue paper to be enjoyed in many future holiday seasons. The internet can be an excellent resource for holiday recipes and crafts.
5. Avoid Shopping Over Load
Before heading back to the mall or the Internet, pause and take a mental inventory. The lack of time can sometimes encourage us to over spend. Stop for a hot chocolate and take inventory of your remaining budget funds and your gift lists. A music and graphic enabled email with a personal note of appreciation, tells the recipient you value their friendship. Cost is usually free.
6. The Reason for the Season
Giving to a favorite, reliable charity on behalf of your family and friends in lieu of individual gifts can help you focus on the real reason for the season. Your personal card to each can then allow them to share in the joy of helping the needy.
© 2006 Florence News reprint permission to Billy Florence Team Dream Chasers site.
Experts offer specific steps to avoid a New Year spending spree hang over. They advise holiday shoppers to set a firm budget, followed by planning each individual purchase and subtracting each purchase from your budget total. If December brings big budget pressure, they suggest increasing gift creativity rather than increasing spending. Trimming the gift list can also provide some financial relief. Consider these six tips for avoiding a financial pinch in the New Year.
SIX TIPS FOR A DEBT FREE HOLIDAY SEASON
1. Set Budget Write Shopping Plan
Determine how much you can reasonably spend this holiday. That should be your maximum amount. Then determine how much of that total you will spend on each individual.
2. Track and Trim
Track your expenses and spending as you go. Waiting until January when you get the credit card statement is too late to avoid unnecessary debt. If you are spending more on family members than you planned, consider trimming that gift list. Replacing a quickly purchased gift with a personal letter tucked in a card may be just the right solution for you and the recipient.
3. Shop Online
Wise online shopping can save you time, gas money, and the aggravation of crowded stores and parking a mile from the building. You can enjoy windows and displays without parting with your hard earned cash. If you do shop online during December, make your credit card “pay off plan.” The National Retail Federation says most of us will spend $800 for the holidays. If you charge that $800 dollars and are only paying the minimum monthly installment, it could take more than 10 years to pay it off. And the credit card company will make more than $1,000 in interest and fees.
4. Get Creative
Gifts that say “personal touch” created by you are the ones most often enthusiastically consumed or lovingly wrapped in tissue paper to be enjoyed in many future holiday seasons. The internet can be an excellent resource for holiday recipes and crafts.
5. Avoid Shopping Over Load
Before heading back to the mall or the Internet, pause and take a mental inventory. The lack of time can sometimes encourage us to over spend. Stop for a hot chocolate and take inventory of your remaining budget funds and your gift lists. A music and graphic enabled email with a personal note of appreciation, tells the recipient you value their friendship. Cost is usually free.
6. The Reason for the Season
Giving to a favorite, reliable charity on behalf of your family and friends in lieu of individual gifts can help you focus on the real reason for the season. Your personal card to each can then allow them to share in the joy of helping the needy.
© 2006 Florence News reprint permission to Billy Florence Team Dream Chasers site.
posted by Billy Florence at
8:28 AM
