| Avoid the "Holiday Hangover" | | | | afford, it is a way to organize your spending and |
| By Mike Peterson | | | | possibly get some rewards and discounts along |
| Ah, the holiday season! Turkey and dressing, | | | | the way. |
| pumpkin pie, Santa hats, jingle bells, and lots and | | | | 11. Make the credit card companies compete for |
| lots of eggnog make the season a delight. But all | | | | your business. |
| fun and reindeer games aside, you have to be | | | | It may be the holidays, but you can dig in your |
| careful to make sure you don't wind up as poor | | | | heels and play hardball. Call your credit card bank |
| as Tiny Tim! Americans can spend as much as | | | | and tell them you won't be using their card for |
| $1,000 a year on gifts for family and friends. That | | | | your holiday purchases unless they sweeten it up |
| is a big chunk of money that can hit you pretty | | | | for you. You want a little sugar and spice to |
| hard come January, but only if you don't plan | | | | make using that card a better deal. You can ask |
| ahead. There are some tips and tricks you can do | | | | for 0% interest, or double your gas points or |
| to keep your holidays bright and debt-free this | | | | flyer miles. Anything to make using your credit |
| year. | | | | card more worthwhile. Banks will usually be willing |
| Before the holidays arrive, do some careful | | | | to strike a deal with you, so long as you try. It |
| plotting and planning. A few hours spent in | | | | can't hurt to ask. |
| preparation can mean less money spent on gifts. | | | | 12. Use specialized credit cards, but carefully. |
| You don't have to be Scrooge, you just have to | | | | Many of the stores where you will be buying your |
| be smart. | | | | holiday gifts offer their own credit cards. They |
| | | | tend to have ridiculously high interest rates. |
| 1. Decide how much you are willing to spend, and | | | | However, they may give you discounts of 10%, |
| stick to it. | | | | 15%, sometimes even 20%! So, you could |
| Pretend you are spending cash. How much can | | | | actually go ahead and use a store credit card to |
| you afford out of pocket this month? If you | | | | make the purchases and get the discounts, since |
| cannot afford it right now, consider that you | | | | you are paying these off when the bill comes due |
| cannot afford it at all. | | | | the interest rates should not be a problem. If you |
| 2. Budget non-gift and after-Christmas items too. | | | | do get into a pinch and can't pay them off right |
| Remember to include other things you buy over | | | | away, then transfer your balance to your |
| the holidays--cards, stamps, candles, a tree, | | | | lower-rate credit card before any interest is |
| decorations, and food galore. Plus, plan ahead to | | | | added to the higher-rate one. You need to be on |
| save some money for next year by taking | | | | the ball with this trick, but it saves you money. It |
| advantage of after-Christmas sales. It is all part | | | | is important to keep in mind that every new |
| of your holiday spending, so plan for it in your | | | | credit card you apply for will lower your credit |
| holiday budget. | | | | score. So if you're saving up for a mortgage or a |
| 3. Make a list of everyone you will be buying gifts | | | | large loan, you'll want to avoid applying for |
| for, and estimate how much you want to spend | | | | additional credit. |
| on each person. | | | | Come the start of January, your main concern is |
| Include the smaller gifts for teachers or your | | | | going to be getting ready for the new year, and |
| mailman. Include the price of cards and stamps, | | | | you won't want post-holiday money troubles |
| because Christmas cards count as gifts when it | | | | making things worse. The Ghost of Christmas |
| comes to your budget. Then, add it up and | | | | Past starts visiting even before you put the tree |
| compare the total to your budgeted amount. | | | | in the trash. Be sure to have a Happy New Year |
| Make the necessary adjustments. Your | | | | by being money-wise from the start: |
| brother-in-law may only get socks this year. | | | | |
| 4. Cut down your list. | | | | 1. When you get your credit card bill, pay it in full |
| This may sound harsh, but look closely at who | | | | right away. |
| you are buying gifts for. When saving money is | | | | Remember, you considered it just like using cash. |
| an issue, it is ok not to give gifts to everyone | | | | Once it is spent, it is spent. You may consider |
| you know. | | | | prepaying the credit card company once you |
| 5. Be creative. | | | | know how much you've spent. You don't have to |
| Determine if maybe some people wouldn't be | | | | wait for the bill to come in. You know you owe it. |
| happy with a nice card or maybe some | | | | So keep the money from burning a hole in your |
| home-baked cookies. Remember, the holidays | | | | pocket by getting it out to the credit card |
| aren't about presents, but about good will towards | | | | company as soon as possible. |
| man. Good will comes in many forms and does | | | | 2. Hit the sales. |
| not always need wrapping paper. If you have a | | | | Remember that budget you made for |
| skill or a hobby, use it: needlework, knitting, art, | | | | after-Christmas items? Use it now. Wrapping |
| poems. Burn a CD, make a photo album, or offer | | | | paper, Christmas cards and decorations will be |
| to plant their garden. | | | | discounted as much as 75%. |
| 6. Carry your shopping list with you. | | | | 3. Go back to your old budget.he holidays were |
| Take every opportunity to shop. Start early and | | | | about spending and being generous and indulging in |
| try to get things before the rush, before highly | | | | delights, but now it is time to go back to your |
| sought, hard-to-find items go up in price, and | | | | money-saving ways. You just had lots of fun, and |
| before you can't find what you need. This gives | | | | got lots of treats, so now return to buying only |
| you a chance to comparison shop. It also takes | | | | what is necessary. |
| away some of the stress and reduces your risk | | | | 4. Start planning for next year. |
| of overspending just for the sake of getting | | | | Help get over the post-Christmas let down by |
| shopping over with. | | | | beginning to plan for the next one. One way to |
| 7. If a store offers free gift-wrap, go for it! | | | | avoid a huge Christmas bill is to buy presents |
| It'll save you time and money on buying wrapping | | | | throughout the year. Whenever you see a |
| paper, tape, bows, and cards and struggling with it | | | | present that "would be perfect for so-and-so" or |
| all yourself. | | | | a great sale with good gift items, take advantage |
| 8. Have willpower. | | | | of the opportunity. The average consumer spent |
| Stick to your estimates and you won't go over | | | | $672 in Christmas expenses for 2003. If you |
| budget. eBay is a wonderful shopping tool if you | | | | spread that out, and purchase a couple of $20 or |
| remember to start early enough to account for | | | | $25 gifts every month, the bill doesn't hurt quite |
| shipping time. Find the right item, bid your budget | | | | as much. Plus, you'll avoid the Christmas rush. |
| price and leave it. If someone outbids you, don't | | | | 5. Start a Christmas fund. |
| get into a bidding war, just bid on something else | | | | Those quarters, nickels and dimes make a great |
| within your price range. | | | | Christmas fund. For your everyday purchases, |
| 9. Increase your income for the season. | | | | instead of paying with exact change, pay with bills. |
| During the holidays there are lots of ways to | | | | You'll be jingling by the end of the day, but you'll |
| make a little extra money. Many stores hire | | | | easily have a dollar or more in loose change in |
| part-time workers for the holidays. Since it is a | | | | your pocket. A dollar a day in change is an extra |
| party season, babysitting is in high demand. Be | | | | $365 you'll have for Christmas Day. |
| imaginative. You could be the Official Gift Wrapper | | | | Last January, when you were struggling with all |
| in your neighborhood and wraps gifts for friends | | | | your holiday debt and trying to get the mulled |
| and neighbors for a small fee. | | | | cider stains out of your carpet, you probably |
| 10. Use your credit cards. | | | | mumbled to yourself, "Next year will be different!" |
| Yes! If you stick to your budget and only spend | | | | It can be. A few hours spent planning, plotting, |
| what you are able to pay for in the next 30 | | | | creating, and caring can save you lots of money |
| days, then yes, you CAN use credit cards. The | | | | come January, and can make 2008 start off |
| key is to use them as you would cash. Using your | | | | happy and holiday-debt-free. |
| credit card is not a way to buy things you can't | | | | © 2004 - 2007 - Reality Media Inc. |