Holiday Shopping Doesn't Have to Lead to New Year's Debt

Orlando, Fla., Nov. 30, 2000 /PRNewswire/ -- As the holiday shopping season approaches, too many Americans are setting themselves up for a post-holiday financial crisis. To help consumers avoid year-end debt, the InCharge Institute of America has created nine simple tips to help consumers plan a budget and shop smart.

"Now is the time to take charge of spending," said Tim Raftis, vice president of the InCharge Institute, a not-for-profit corporation that offers customized financial counseling programs. "With foresight and budgeting, anyone can greet the New Year with confidence instead of worries about accumulated debt."

The InCharge Institute of America is a not-for-profit 501(c)(3) corporation with headquarters in Orlando, Fla. It operates the InCharge Institute for Consumer Credit Education, which offers customized counseling and educational programs to help consumers manage their financial difficulties and plan for long-term financial health.

These tips are provided by the InCharge Institute for Consumer Credit Education (www.incharge.org.).

Determine Your Budget: The first, and most important, step is to create an overall holiday gift-giving budget that includes the cost of using your credit card. For help, visit the InCharge Institute for Consumer Credit Education website at www.incharge.org. .

Be Thorough: Budget for all aspects of your shopping, from meals and travel to shipping and handling.

Start With Amounts, Not Items: Make a list of every person you would like to give a gift this year, and the amount for each person.

Shop With Your Heart -- But Budget With Your Head: If you've had a rough year financially, consider shrinking that list where you can.

Spend Cash -- Not Plastic. To the best of your ability use cash or your debit card when holiday shopping. 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, specials and free giftwrapping offers.

Compare Online: Compare online prices just like you would compare those in stores. Also, beware of forgotten shipping costs when e-shopping.

Eat Before You Shop: 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.

SOURCE: InCharge Institute www.incharge.org.