The holiday shopping season is in full effect and, if you are like millions of other people, you are probably ready to hit the stores for decorations, foodstuffs and gifts. The holidays signify a time of sharing, spending time with loved ones and demonstrating appreciation for each other, however, the message that seems to prevail throughout the season is the material – gift giving is equated with the holiday spirit. It is, then, no surprise that many households find themselves stretched thin after the holiday season. In fact, a survey conducted this year by VISA USA found that Americans say they spend an average of $1,224.82 on gifts and entertaining over the holiday season. Moreover, these costs are on top of the rent/mortgage, food shopping, clothes, transportation, loan payments, and other bills that need to be paid.
In a report published in 2003 by Consumer Credit Counseling Services Inc., statistics gathered in November showed that 54% of consumers were still paying off credit card debt left over from the previous holiday season. It’s become commonplace for households to spend so much money during the holidays that the only way they can pay is by using credit cards and THAT ends up being debt that takes much longer than anticipated to erase.
Although the statistics seem alarming, there are well-known strategies that you can adopt in order to avoid the debt-induced blues during the holiday season. In order to control your financial security during and after the holidays, always draft a budget; people tend to get in trouble when they don’t set a limit on how much will be spent on different items. And don’t forget to include absolutely everything in your budget – a lot of the money spent ends up on the floor on Christmas morning, like wrapping paper, ribbons, bows and cards. If you sit down and figure out how much you are willing to spend on each item, you will be more likely to stay within that budget and avert the nightmare of trying to catch up with the debt incurred during the holidays.
If it turns out that you do not have the extra income to spend on gifts, entertainment, wrapping paper, etc., you could consider other options like home-made gifts, baked goods, heart-felt letters, or inexpensive, practical items like books, puzzles, journals or picture albums. When it comes down to it, none of your loved ones would want you to face financial difficulty and would support your attempt at being financially solvent and economically secure during and beyond the holiday season.
