Released December 4, 2008
WEST LAFAYETTE, Ind. - With the holidays approaching and the economy struggling, a Purdue University expert says it's important for consumers to budget their money, monitor spending and avoid getting in too deep with credit card debt.
"Start the holiday shopping season by making a list of all the things you are likely to spend money on. These can include things like gifts, décor, cards, postage, food and clothing," says Elizabeth Kiss, Purdue Extension family resource management specialist. "It's important to then evaluate how much money you have to spend and the likely cost of the items on your list. The key is to create a budget and stick to it."
With the financial crunch, more consumers may be likely to rely on credit cards, but Kiss warns that excess credit card debt can be dangerous.
"The first step to avoiding excessive credit card debt is to remember not to charge anything that will be gone before it's paid off, such as fast food or gas," Kiss says. "Another important tip is to have a plan. Set limits and track actual spending by using only one credit card and by keeping a spending log and all receipts in one place. It's easy to get caught up in the moment, which is how many consumers get into trouble.
"People have good intentions of paying credit cards off at the end of each month, but due to a variety circumstances, most don't."
Another way to avoid overspending is to have a specific amount of cash in hand and not to withdraw more when it's gone.
"Have a plan and stick to it," she says. "Think about the long run and what this amount of spending is going to do to you and your family."
Finally, Kiss recommends focusing on non-material ways to celebrate the holidays.
"Stop to think about the more meaningful ways to spend the holidays," she says. "There are other ways to celebrate beyond the spending."
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http://news.uns.purdue.edu/x/2008b/081204KissSpending.html
Contacts: Elizabeth Kiss, (765) 494-8299, kissde@purdue.edu
Jennifer Stewart, (765) 494-6682, jsstewar@purdue.edu
