Experts caution holiday shoppers not to go broke buying Christmas gifts

December 09, 2010|by Sara Forhetz, KY3 News | sforhetz@ky3.com

A national survey shows fewer people say they are using credit cards this Christmas shopping season than the last one. More people say they'll stick with cash or debit card only. Consumer credit counselors say that's because there has been a shift in holiday shoppers' attitudes as they spend much less than previous years.

SPRINGFIELD, Mo. -- This is a prime time for many people to overspend, charging up bills they simply will not be able to pay come first of the year. If you can't afford it, avoid it, credit counselors say.

Credit counselors think Black Friday might have been the peak in what they believe will be a decline in spending from now until Christmas.

Plastic is not the first choice for shoppers this year. Credit cards will not be so popular, according to a recent national survey. The survey of 2,400 people showed more than 90 percent of those polled will spend less this year on gifts, or none at all.

With the recently enacted credit card laws, you can now see in black and white on your statement just how much that $100 charge is really going to cost you if you only make the minimum payment. The cost will quickly turn into hundreds, even thousands of dollars more.

Counselors also say to keep in mind that no real friend and no family member would want you to go into debt to buy a gift.

"It's best to walk in the store with a debit limit or cash money and, when the cash is gone, your shopping is over," said Mike Cherry, president of Consumer Credit Counseling of Springfield.

Seventy-percent of people reported they plan to use cash only, and no credit cards. Experts say the best thing you can do is set a budget before you shop, and only take that much money with you. Once it's gone, leave the store.

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