5 Ways To Keep Holiday Spending in the Bag

Freedom Financial Network Offers Tips To Avoid Financial 'Holiday Hangover

(PRWEB) December 10, 2004 -- Last holiday season, Americans shelled out an average of $700 per household for gifts, according to Cardweb.com. And with plastic -- credit, debit, or pre-paid cards -- now used for more than 50 percent of store purchases, its no surprise that revolving consumer debt is now more than $740 billion.

California-based Freedom Financial Network, LLC, a national consumer debt resolution service, helps people get out of debt, which means they know something about how people get into debt trouble. Here are Freedom Financial Networks top five ways to avoid holiday debt problems this season:

1.    Set limits -- Ideally, youll have saved for the holidays throughout the year -- even $25 a month helps. If not, look at your monthly budget and figure out how much you can afford to set aside towards holiday gift giving without going into debt. Your intentions may be good, but the reality is that most people have a depressing amount of credit card debt after the holidays and are not able to pay it off in as timely a manner as planned.

2.    Make a list -- Make like Santa and list all your holiday expenses. Include small gifts to teachers, babysitters, newspaper carriers, etc., which can add up quickly. Dont forget extras you may have, such as cards, food and beverages for entertaining, and holiday clothing purchases.

3.    Put a value on it -- Set a spending limit for each person and each item on your list. Dont be pressured to overspend based on what you think others expect -- Thats often when credit card debt begins to mount. If your list looks skimpy, fill in with homemade gifts or offers to help the recipient, such as babysitting, yard work, home-cooked meals, or help putting away holiday decorations.

4.    Start early -- Really smart shoppers stock up gifts throughout the year. If you havent done that, do yourself a favor and avoid the last-minute rush. In doing so, you'll have time to comparison shop. Youll spend more -- and use the credit card more -- if youre in a panic to find the right gift, or just to get out of the mall.

5.    Be a quitter -- When you hit your budget limits, stop. If you need hard-core support to keep yourself in check, leave credit cards at home and put each persons budget in an envelope, in cash. When its gone, its gone -- and youre done.

Tie up your gifts with some beautiful wrapping paper and give them with love. Best of all, follow these simple steps and youll avoid the nagging feeling that youve overspent on holiday gifts. Youll avoid struggling to pay off the credit card bills for months to come, and instead, ring in the New Year feeling in control and free of the dreaded financial holiday hangover."

Freedom Financial Network, LLC (www.freedomdebtrelief.com) provides consumer debt resolution services through its Freedom Debt Relief, Freedom Foreclosure Relief, and Freedom Tax Relief divisions. The company represents the consumer exclusively, serving in a position of mediation and negotiating with unsecured creditors to offer an alternative to bankruptcy, credit counseling, and debt consolidation. Based in San Mateo, Calif., Freedom Financial Network serves more than 2,000 clients nationwide and manages more than $70 million in consumer debt.

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