Fairfax, VA - October 27, 2005 — Now is the time to prepare financially for the cost of decking the halls for consumers who want to avoid waking up to the New Year awash in fresh debt. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) recommends taking the time to plan for holiday spending in advance.
"Too often consumers get caught up in the rush of the holidays without planning ahead and knowing what they can realistically afford," said Dave Jones, president, AICCCA. "Unfortunately, many consumers will still be paying off last year's holiday expenses when they start shopping this year."
AICCCA offers these hints for planning:
Determine the amount you can spend. Look at what you have spent in past years and make a dollar decision on what your family can spend this year. Make a list that includes amounts spent on not only gifts, but also on holiday entertaining, special food, decorating, gift-wrap and accessories. Think about what aspect of the holidays is most important to you and let your spending plan reflect that. If what you enjoy most is entertaining, allocate more of your money there. Or you may enjoy treating the neighborhood to a great light display. (If this should be your choice, don't forget to add in the added electricity cost!) Then assign a total amount for each category.
Take a page from Santa's book. That's right, you need to list everything on your spending plan. Assign a dollar amount for each item. Take your list with you when you shop and mark off as you go. Think of it as a trip to the grocery store and don't revisit the same aisle over and over. Put your item in your cart, cross it off your list and move on.
Record your purchases. File your receipts with your spending plan and you will be able to not only keep track of where you are in your plan, you will have easy access to receipts should an item need to be returned. Plan time in your schedule to review where you are regularly. This way if you spend more on an item, you will be able to adjust your plan immediately.
Shop during the week. The stores and malls are less crowded early in the week. Try to shop when you are rested and relaxed. Shopping in a hurry can contribute to impulse buying.
Comparison shop. This is especially true for big-ticket items, but it can also pay off for smaller purchases. Take advantage of sales and coupons.
Leave your credit cards at home. Consumers are often cautioned against carrying large sums of cash during the holidays, so your best bet is your debit card. Just don't forget to record your purchases in your checkbook.
Be creative with your gift giving. It really is the thought that counts. An out-of-print book for the avid reader on your list may only cost you $5 at a used bookstore but will be treasured far beyond the actual monetary value.
Make it, bake it, promise it. Homemade treats or crafts are perfect for friends, neighbors and co-workers. Coupons for pet sitting, car washes or garage clean-outs may be just the ticket for others on your list. Use your imagination to come up with the perfect service that will long be remembered by friends and family.
Donate to a charity. This is an ideal gift for that someone who has everything. By making a donation in his or her name, everyone is a winner. And you can even claim a tax deduction!
When you've bought all the gifts on your list, stop shopping. Catch up on your holiday movie watching, take a drive to look at the lights, go caroling, build a snowman, pop popcorn in the fireplace or treat yourself to some good old-fashioned hot chocolate. If you delay something you know your family will enjoy until the end of your shopping, you will be that much more inclined to finish early. The sooner you finish, the sooner you stop spending money and enjoying the true spirit of the holidays.
Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call (800) 450-1794 or visit www.aiccca.org.
