Consumer Credit Experts Available to Discuss How to Spend Wisely When Holiday Shopping

Orlando, Fla., Nov. 17, 2000 /PRNewswire/ -- With the holiday shopping season heating up next week, consumers will soon flood malls and e-tailers to buy gifts for family and friends. For many Americans, holiday shopping can be a financial drain that sinks them into serious year-end debt. With a little planning, however, holiday shoppers can purchase the gifts they want to give and welcome in the New Year without having racked up unmanageable debt.

The InCharge Education Foundation understands that each person's financial situation is unique, and therefore offers customized counseling and educational programs to help consumers manage their financial difficulties and better plan for longterm financial health.

WHAT: Holiday Spending Tips. The InCharge Education Foundation has created a list of nine simple and effective tips to help consumers with holiday spending. The tips are built around proven principles of budget planning and smart shopping. Consumer credit experts are available to expand on and discuss these tips and related topics.

Take Charge of Your Spending This Holiday Season

Many people are wary of the holiday season, worried that their spending will get out of hand and January will bring a slate of inflated credit card bills and a big post-holiday letdown. No need to fret - you can take charge of your spending with a little forethought and planning. Below are some tips to help you stay on track and actually welcome the New Year!

Determine Your Budget: The first, and most important step in planning for holiday shopping is to determine your overall budget for gift giving this year. For help creating a budget or calculating the cost of using your credit card to purchase gifts, visit the InCharge Institute for Consumer Credit Education web site at http://www.incharge.org.

Be Thorough: Your budget should include money to spend on all aspects of your shopping, including meals, travel, gift-wrap and cards, and shipping and handling charges incurred from shopping by catalog or online.

Start With Amounts, Not Items: Make a list of all those to whom you would like to give a gift this year. Fill in the amount you would like to spend on each person before you consider what the gift will be. Once you have an amount in mind you can begin to think of gifts that fall into that price range.

Shop With Your Heart -- But Budget With Your Head: If you've had a rough year financially -- consider shrinking that list where you can. The holidays should not be a contest for who can go the deepest into debt! Take your time shopping, and you'll find just the right gift, at just the right price.

Spend Cash -- Not Plastic. To the best of your ability use cash or your debit card when holiday shopping. If you keep even a small balance on your credit card, these purchases cost more than cash purchases, add up quickly and are easily forgotten (especially when made online). If you must use a credit card and plan to go into debt, be sure to use only one or two that have the lowest interest rates.

Shop "Early and Often": Take advantage of sales and specials. Also be on the lookout for free giftwrapping offers. This will save you money and time. Visit off-price retailers often so you can scoop up their bargains as soon as they arrive. Keep on top of early bird specials from e-tailers. Many offer free shipping on orders placed before Thanksgiving.

Compare Online: When shopping online, be sure to compare prices just like you would at offline retail stores. Prices for the same item can vary widely from site to site. Also, beware of forgotten shipping costs that could blow your budget.

Eat Before You Shop: Prepare for hectic shopping trips by keeping some easy-to-prepare meals at home. You can fix a quick bite before shopping to avoid the cost of mall restaurants. Then treat yourself to coffee or a soft drink and a light snack when you need a break.

While You're In Shopping Mode ... Shop for a Better Credit Card Deal: If you carry a balance on your credit card, call your issuer now to see about a rate reduction or take advantage of low introductory rate offers from other banks -- but make sure to make a note on your calendar when that rate jumps up. If you pay off your balance in full each month, try to take advantage of cards with benefits, such as frequent flyer miles or grocery credits.

Headquartered in Orlando, Florida, InCharge^® Institute of America, Inc. is a national non-profit organization specializing in personal finance education and credit counseling. The InCharge Institute family includes InCharge^® Education Foundation, which publishes YOUNG MONEY^® magazine and Military Money^™ magazine and offers basic financial management education to clients and the general public, and InCharge^® Debt Solutions, which provides professional credit counseling and financial education services. InCharge is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA).