Holidays

Holiday Survival Guide

Shopping Strategies

If you do all of your holiday shopping on a credit card, you actually can spend two to three times as much, once you figure in interest and finance charges. Here are some ways to avoid holiday debt.

PAY WITH CASH. Spend money you already have: Use Interac, cash, or write cheques.

Make a budget not a per person budget, but an overall budget for all of your holiday spending. After the budget is complete, compare it with the amount you have available to spend. If it’s more than you can afford, look for areas to trim expenses.

Keep track of how much you have spent on gifts, dining and entertainment. Make a list of travel expenses, holiday clothes, cards, postage, wrapping paper and decorations. Remember, little things like wrapping paper, shipping and tax add up, so put these things into your budget. Also look for ways to trim the cost of decorations and wrapping paper. Buy plain paper and have the kids decorate their gifts themselves with stamps or crayons. Use cards from the previous season to make gift tags for this season. If stores offer free gift wrapping, take advantage of it!

Make a list of all of the people who you would like to give gifts to, and rank people on the list.

Know what you want to buy, and for whom, before you go shopping. Check to see what stores have the best bargains and make a list with the costs. After you finish your list, total the costs and prepare to spend only that amount in each store.

Shop alone when you’re doing the bulk of your gift buying. It will help you avoid impulse spending. Don’t shop while you’re tired or hungry.

Steer clear of high price fad items and instead buy practical gifts that last longer such as clothes, tires, or appliances. Resist the little extra gifts. They often add up considerably and can break your budget.

Think before using your credit card to take advantage of holiday “bargains.” Comparison-shop, particularly for large ticket items. It’s good to take advantage of these opportunities, but always ask yourself, “Would I buy this if it weren’t on sale?”

PROTECT YOURSELF FROM HOLIDAY CRIME

PRACTICE HOLIDAY SHOPPING SAFETY ONLINE

Do:

Always use a credit card to purchase items. If you are scammed, you typically only owe $50 or less for the loss instead of the whole amount. If you are new to shopping online, stick with companies you have heard of. When you enter the shopping cart or the e-commerce area of a site, check the beginning of the web site’s address, or URL secure servers show "https” instead of “http”.

If you participate in an online auction, check the references of the seller — they are usually kept on the auction web site. Factor shipping costs into your purchase price while shopping. It is often quite expensive to ship from the US to Canada if you are shopping on a US company’s site.

Don’t:

Never put credit card information or personal information like social insurance numbers in an e-mail. Legitimate shopping web sites use special forms. Never respond to offers that come in unsolicited e-mails — these are often scams.

Consolidated offers these suggestions for money management success in the New Year:

Track your spending. Write down all of your expenses and eliminate those that are not smart or necessary.

Create a budget. Construct a cash flow sheet showing income and outgoing expenses. Determine how much money is left each month and decide how you are going to save. Stay within your budget.

Begin a savings plan. Start saving a looney-a-day and all pocket change. It will average $40 a month.

Pay by cash instead of using credit cards. Do not take on any new debt and pay off old debt.

Have weekly family meetings on improving spending with other family members.

Start fresh! Clean your house and sell items that are losing value or donate them to charity.

Consolidated Credit Counseling Services of Canada is a registered charitable nonprofit educational organization that can help you with your financial resolutions. Call 1-800-656-3920 for free advice and counselling.

Counsellors can answer questions like:

Should I tell my bank if I am having trouble making payments?

What can I do about the bill collectors who are harassing me?

What is the difference between a debt management plan and a consolidation loan?