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With only 10 days left until Christmas, time is running out for those who haven't yet purchased gifts for the never-ending list of friends, co-workers, neighbors and, last but not least, family.
That could be a dangerous predicament for some people,
say credit counselors.
"People are beginning to panic," said Carmela
Vignocchi of the nonprofit Consumer Credit Counseling
Service (CCCS), who added that it's not too late to
take some steps to prevent a major financial crisis.
"Our biggest suggestion still is to go with a
list and know what you can afford - and to use cash,
not credit," she said. "Because what will
happen in January and February is those bills will
come in and it will be more than they can afford."
CCCS is just one of several agencies dedicated to
helping consumers avoid debt or get out of it if they're
in it already. Vignocchi is based in CCCS's San Luis
Obispo office and serves as director of community
relations.
Bay Area-based Freedom Financial Network offers five
tips to minimize holiday debt: Set an overall spending
budget; make a list of gifts and stick to it; set
a limit for each gift or person on the list; start
early to avoid the last-minute rush; and stop spending
when you've reached your limit.
Avoiding the last-minute rush may be a moot point
at this late date, but the others should still be
attainable.
Smartmoney.com offers a worksheet specifically for
the holidays that allows consumers to create a budget
for various kinds of expenses and track their spending
as they go. It is designed to include often-forgotten
costs such as wrapping paper and holiday travel. It
is essential to keep in mind those related expenditures,
Vignocchi said.
"During the holidays we like to eat special holiday
foods, so don't forget to add that onto your list,"
Vignocchi said. "And don't forget the added costs
of wrapping and shipping. Remember, all the normal
expenses like bills that still need to be paid."
Holiday spending for 2004 is expected to be slightly
better than last year's, according to a variety of
surveys and estimates.
The National Retail Federation (NRF) expects spending
in November and December to be around $219.9 billion,
or 4.5 percent higher than last year, including most
online sales.
"Consumers are still in the game, with many splurging
on high-end merchandise," said NRF Chief Economist
Rosalind Wells in a press release. "November
sales are an indicator that the holiday season is
off to a good start."
Online sales are expected to increase at least 23
percent over last year, according to comScore Networks.
The consulting company expects non-travel Internet
retail sales during November and December to reach
at least $15 billion, up about $3 billion from last
year.
Locally, some businesses are seeing an increase in
sales. Bacahl Lawrence, manager of Eileens Treasures'
Gifts for Less, said holiday spending has been up
over last year. Eileens has been in business at 859
Oak Park Blvd. in Pismo Beach for seven years.
"Sales are a lot higher for us than last year's
Christmas," Lawrence said. "Every year they've
increased, but this year people started earlier, so
sales went up earlier."
Vignocchi agrees that local stores deserve a good
chunk of local residents' business, but she cautions
against carelessness.
"It makes sense to spend your dollars in local
businesses," she said. "But it's important
for people not to get into that overspending."
Dec. 17, 2004
Click
here to go to Freedom Debt Relief's website |
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