Boost Your Spending Spirit and Reduce Your Holiday Debt Stress

The day after Thanksgiving is the most anticipated shopping day of the year—the beginning of the holiday shopping season. It’s also a time when poor financial planning can lead to overspending and deeper debt.

“When you don’t plan, spending for gift-giving can become a burden,” said Kim Womack of Consumer Credit Counseling Service of South Texas. “Now is the time to compare your income and savings to your credit card debt, living expenses and other financial obligations. This assessment should help you determine the number of gifts you can afford to give and the total amount you can afford to spend,” said Womack, director of education.

With consumer spending at its lowest point in nine years, CCCS offers three tips to help holiday shoppers spend wisely: Draft a spending plan in November, stay the course in December and breathe easier in January.

1) Draft a Plan in November

Develop Your Holiday Budget: Determine what financial expenses you’ll have in November and December. Decide who you’ll shop for and the number of gifts you’ll need to buy. Don’t give more gifts than you can afford.
Boost Your Holiday Spending Account: Ask about ways to make overtime pay at work. Look for seasonal, part-time employment and consider using part of any holiday bonus to offset expenses. Find ways to cut your energy and utility bills, like turning off the lights when you leave a room and turning off the TV when you’re not watching.

2) Stay the Course in December

Avoid Last-Minute Shopping: Shopping under stress can lead to more spending. You might buy what’s easiest, which may not be most economical.
Shop Smart—Look for Deals: Look for sales, discounts, coupons in newspapers and deals online. Ask about markdowns after the holidays. If may be worth buying gifts after December 25th.
Track Your Expenses: Tally your receipts from credit card, check and cash purchases. Don’t spend more money than you’ve set aside. Once you’re done shopping, stop. More mall time can amount to more spending.

3) Breath Easier in January

Maintain financial planning momentum: If you’ve kept to your budget, you’ll start the year with less debt stress. Don’t stop your financial planning after the holidays. Plan for the year. Balance your household budget and you could have even more money to fuel your holiday spending spree in 2003.

NEED HELP GETTING YOUR HOUSEHOLD BACK ON TRACK? CCCS of South Texas has trained and certified credit counselors who offer financial management and debt reduction services that are low-cost. To assist consumers, CCCS suggests asking these questions before entrusting organizations with their financial future.

Quality Assurance/Credibility

Are they consumer-focused or are they driven by their financial bottom line at the expense of consumers?
Is the agency accredited by a reputable third-party organization? Does the organization certify the agencies’ services are quality and in the consumers’ best interest?
Are their counselors certified or trained in basic money management services? Or are they telemarketers whose only goal is to sign consumers up for a debt payment plan?

Fund Management and Safety

How are client funds collected and disbursed to creditors?
Do they retain any client payments for their company?
Are clients fully credited for all and full payments to creditors?

Service Delivery

What fees does the agency charge? Do they disclose their fees and services up-front?
Is counseling offered in person or by telephone? Does the consumer have a choice?
Does the agency provide financial management or budget counseling in addition to debt management services? Does the consumer have a choice of service?
How will working with the organization impact customers’ credit?

CCCS of South Texas is a nonprofit, United Way agency and a member of the National Foundation for Credit Counseling (NFCC). CCCS has been providing free counseling and educational services in the South Texas area since 1969. The agency also offers a Debt Solver Plan to those with severe financial difficulties. This repayment plan is an alternative to bankruptcy. CCCS has numerous offices in the Crossroads, Coastal Bend and Rio Grande Valley areas. For more information, call 854-4357.