Holidays
Concerns about debit propt holiday shoppers to economize
Special to the Star-Telegram
Monday - Nov. 17, 2003
How much do you plan on spending this holiday season?
The ever-optimistic retail industry is gearing up for what it predicts will be its best season in three years, already adding 30,000 employees to support the larger influx of shoppers, according to the Labor Department.
But a nationwide survey of 1,000 randomly picked consumers suggests that the country is still feeling the financial pinch. Only 13 percent said they plan to spend more this holiday season, while a whopping 58 percent said they will spend less, according to the survey sponsored by Consolidated Credit Counseling Services, a national counseling company based in Fort Lauderdale, Fla.
How much less? According to the survey, more than half will spend 10 percent to 20 percent less, while the rest are planning to spend somewhere between 20 percent and 50 percent less.
The overwhelming reason for curbing holiday spending this year is too much debt. The survey showed that 67 percent of respondents said they had too much debt, and an amazing 54 percent said they were still paying off holiday debt from last year.
Other reasons for reigning in holiday spending include less income (18 percent), job loss (5 percent) or the overall economy (10 percent.)
Interestingly, only 12 percent of those surveyed said they would be using a credit card to pay for their holiday gift buying, while the No. 1 New Year's Resolution for three out of four surveyed this year was to get out of debt.
"It seems that more Americans are being level-headed and are planning to be financially conservative this holiday season in light of the economy and unemployment rates, but we want to emphasize that you can still have a joyful holiday season without spending money you don't have or should be saving," said Howard Dvorkin, president of Consolidated, in a statement with the survey.
To that end, Consolidated is offering a number of holiday shopping strategies. Among them:
* Have a game plan. Never go shopping without a list of who you have to buy for and what you are going to buy. Comparison shop and look through catalogues and advertisements before going to the store.
* Discount shop. You can save as much as 20 percent by buying food and drink for holiday entertaining at discount warehouses.
* Credit limits. People spend as much as 30 percent more using credit cards instead of cash. If you use a card, just use one to consolidate your spending.
* Save receipts. Often items go on sale after the holidays. You can sometimes get a refund for the difference. Check store policy before going back.
* Shop alone. And not while you're tired or hungry.
* Be creative. A jar of homemade cookies, a framed picture of your child, an "event" such as a movie or theater performance for your niece or nephew may mean a lot more than a store-bought gift.
* Stretch it out. Next year, try buying one present a month to better enjoy the season.
At www.Consolidated Credit.org consumers can find a free Holiday Survival Guide, which includes a list of no-cost creative holiday ideas, and a budgeting and gift worksheet.
