Discover Alternatives for Gifts, Credit This Holiday Season

The average household is expected to spend over $1,100 on gifts alone this holiday season, according to retail analysts. This level of spending has a local credit counseling agency concerned about overuse of credit.

Studies show that, during the holidays, people who use their credit cards to buy presents spend over 30 percent more than those who use cash. Add in all the finance charges and one could spend up to 50 percent more on holiday shopping. "Since most people do not pay their credit cards in full each month, consumers should be cautious about charging their holiday gifts," said Kim Womack, director of community relations for Consumer Credit Counseling Service of South Texas. "Many people cannot afford to spend or charge that amount of money. They owe too much already," said Womack.

Too keep purchases to a minimum, CCCS offers the following tips:

1. Change holiday gift giving traditions. It is no longer practical for many to give gifts to everyone in the family. Draw names and set limits on the amount of the gift. Consider buying only for the children or giving one gift suitable for an entire family. Do not feel obligated to give gifts to neighbors, friends and co-workers.

2. Consider alternative gifts. Homemade gifts of crafts, artwork, plants and baked goods are often appreciated more than bought gifts. Collections of favorite recipes, photos and family videos can become treasured heirlooms. Give an I.O.U. for babysitting, yardwork, repairs or meals as well.

3. Find alternatives to credit. Short on cash this season? Have a garage sale or take nicer clothing to a consignment store. Consider a part-time job for extra cash. Many businesses need extra help during the holidays. Use savings if available. Buy gifts year-round, taking advantage of various sales and clearances.

4. Avoid expensive stocking stuffers. Some suggestions include socks, paperback books, toiletries, and calendars.

CCCS also warns consumers to avoid offers of free gifts to open a department store credit card account. Too many credit cards on a credit report can be viewed negatively by prospective lenders. Also, if one must resort to credit purchases, use one bank card with a low interest rate. Then pay off the holiday charges prior to May 2001.

For more information, contact CCCS at 800-333-4357 or visit their web site at www.cccsstx.org. CCCS is a nonprofit, united Way agency and a member of the National Foundation for Credit Counseling. The agency provides free budget and credit counseling, debt repayment plans and educational services.