Tips for Controlling Holiday Spending

Buying the perfect gift for everyone on your holiday gift list can make the December holidays cheerful and bright; but happiness quickly turns to doom and gloom when January credit card bills arrive. Holiday overspending can send even financially stable consumers into months of debt. For consumers who are already struggling with significant debt, hefty holiday bills can push them over the financial edge into insolvency, warn debt relief professionals.
If you like to indulge your family during the holidays, you can break the pattern of holiday overspending. Debt relief counselors recommend these tips for keeping holiday debt under control:
■Don’t fall for sales gimmicks. Sales that scream 50% off or two for one often entice frenzied holiday shoppers to buy unneeded items. Remember that while 50% off may seem like a great deal, deciding not to purchase will keep 100% of that money in your pocket.
■Avoid the bogus bargain trap. When retailers offer deep discounts, check the quality of the merchandise being offered. Even if it carries a name brand, quality may be inferior. And always check competitors’ prices. Retailers may inflate the manufacturer’s recommended price, allowing them to show a bigger discount when the item goes on sale. One retailer’s deep discount can be another’s regular price.
■Don’t sign up for store credit cards. It sounds like a good deal when you reach the cash register and the sales clerk offers to save you 20% on your purchases if you sign up for a store credit card, but the retailer is the only one who profits. Store credit cards carry high interest rates, short pay periods and high late fees.
■Nix extended warranties. The manufacturer’s warranty protects you from product defects for the first year, plenty of time to see if you’ve bought a lemon. Extended warranties seldom give back what they cost, but retailers make a healthy profit!