How to Avoid the Holiday Debt Hangover

Take Charge America Offers 5 Tips for Saving Money This Holiday Season on Decorations, Parties, Gifts and More

PHOENIX – The hustle and bustle of the holidays may spur more anxiety than usual this year, as many American consumers look for ways to curb their spending. However, it is possible to spread holiday cheer without breaking the bank.

A recent survey from the National Retail Federation indicates that the economy will affect two-thirds of families’ holiday plans, with the majority of these consumers opting to simply spend less.

“It’s emotionally draining to worry about spending money that you just don’t have, especially during the holidays,” said Mike Sullivan, director of education for Take Charge America, a national non-profit credit counseling agency. “Yet a few basic adjustments can make for a happy holiday without the hangover of post-holiday debt.”

‘Tis the season to save and Sullivan offers five tips to get started:

• Make a Family Rule – Many of us talk ourselves into spending extra cash when we locate the perfect gift. So to avoid overindulging, agree to spending limits with your family and friends. For example, no gifts over $10, $20 or $50. When families stick to the rule, everyone saves and no one feels bad or embarrassed that they didn’t spend more.
• Communicate with Younger Kids – The holidays are about much more than gifts. Remind younger children about the true meaning of the season and make it clear why expensive gifts aren’t needed, especially in the current economic climate. It’s also the perfect time to start new family traditions that don’t center on exchanging gifts.
• Homemade Décor Feels Like Home – There’s no need to go overboard on decorations. Making your own can be both economical and environmentally friendly. A little paint, glitter and a few pine cones are a fast and festive way to spruce up your holiday décor. And don’t forget about last year’s decorations. If they’re in good shape, don’t purchase new versions just because it’s a new season.
• Holiday Parties on a Budget – Being the host doesn’t mean the entire party should be on your dime. Throw a potluck and ask guests to bring their own beverages. These types of invitations are perfectly acceptable and can save a lot of cash. Or, just keep things small and intimate with your family and closest friends—your guests will appreciate just being together. Good conversation and laughter is free.
• Create a Spending Plan and Stick to it – Before starting your seasonal shopping, determine how much money you have available for holiday spending. Create a list of gift recipients, set a budget for each gift and write down gift ideas before you set foot in a store. Allowing time for planning and comparison shopping will help you find the best selection and price.

To find more money-saving tips, visit www.takechargeamerica.org.

Published on behalf of Take Charge America, Inc.
Take Charge America, Inc., a non-profit financial education, credit counseling and debt management agency, is dedicated to helping consumers nationwide improve their financial futures. It partners with creditors, credit unions, employers, military/government groups and higher education institutions to reach different segments of the population experiencing a variety of financial challenges. Since its founding in 1987, the company has grown from three to nearly 400 employees. It has helped more than 1.5 million consumers nationwide learn to manage their finances and repay $4 billion in personal debt. For more information on Take Charge America, visit www.takechargeamerica.org or call (888) 822-9193.

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