AAICCCA Warns Consumers Economic Recovery Does Not Mean Holiday Shoppers Should Forget About Planning


Fairfax, VA — November 21, 2003 - Association of Independent Consumer Credit Counseling Agencies, (AICCCA) warns consumers that an improving economy does not warrant spending tomorrow's earnings for holiday expenses. For many people the holidays bring out their generous natures and they spend more on holiday gifts, travel and food than they can afford. Ending up with a heavy debt load for which many will be making payments throughout the next year.

"It is possible to enjoy the holidays without increasing your debt to unmanageable levels," said Dave Jones, president, AICCCA. "All it takes is a small amount of planning and the discipline to follow the plan."

To help, AICCCA offers the following tips for consumers to avoid unwanted holiday debt.
• Start with a plan. Consumers who start holiday shopping without a plan will almost always spend more than they intended to. In fact, holiday shoppers spent 81 percent more than they anticipated spending last year reports International Mass Retail Association. To help control spending, create a spending plan that identifies how much money you can afford to spend for gifts, entertainment, food, gift wrap and accessories. Allocate a certain amount of money for each category of spending. If giving great gifts is most important to you, your plan should reflect that. On the other hand, if you enjoy entertaining friends and family at holiday dinners and parties, then the majority of your money will be designated in the entertainment category.
  
  
• Shop with a list. Write down everyone for whom you will be buying a gift and approximately how much you plan to spend on their gift. Keep in mind that if you can't pass up the perfect gift for Aunt Sally that is $20 more than you planned to spend, you will need to spend less on someone else's gift. Remember that when it comes to gift buying "it's the thought that counts." Know that time spent together and the thought behind the gift is more important than the amount of money spent on the gift.
  
  
• Purchase with cash. Carry cash or debit cards and leave the credit cards at home. It is easy to get caught up in the spirit of giving and make a decision to buy a more expensive gift than you planned. If you do not have anything with you to make such a purchase, the impulse will pass and you will have avoided spending more than you would have wanted. Keep track of all your purchases. Save receipts and go back to your spending plan after a shopping spree and take a look at where you are. Make adjustments as necessary to stay within your holiday allowance.
  
  
• Use credit with caution. If you decide to make some of your holiday purchases with credit, track your purchases carefully and do not spend more than you planned. It takes more discipline to shop with credit because you do not run out of money and you must pay closer attention to how much you are spending. As an example, a Visa survey found that consumers spend 30 percent to 50 percent more when using credit cards rather than cash. Have a plan in place to pay off the purchases in no more than 90 days.
  
  
• Give gifts with a personal touch. Get creative with homemade gifts or cards. It is not necessary to purchase a gift for everyone on your list. A homemade card or baked treat can be just the right gift for a neighbor, friend or co-worker. You may also giving gifts of time or service such as house sitting or lawn work.


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.