Black Friday Blackens Consumer Credit Outlook

The biggest shopping day of the year, Black Friday, can push consumer debts over the edge. Book credit expert, Larry Chiang, for your TV or radio show or just have him provide credit industry insight.

(PRWEB) November 25, 2005 -- Black Friday can kick off a season of financial hardship according to Larry Chiang, founder of Duck9.com. Retailers call it Black Friday because shop owners see Friday as the most profitable day (black exemplifies a profit, red ink a loss). Profit for retailers comes at someone's expense," states ABC Chicago TV news guest Larry Chiang.

"Consumers have typically been on the wrong side of the interest rate equation", states Larry Chiang, previously founder of United College Marketing Services. On Black Friday, what do consumers do? Pile into the family minivan and splurge on items that they sometimes can’t afford. Here are some solutions:

Avoid momentum spending. Studies have shown that when consumers fall deep into debt, there's apathy towards new debt. To battle momentum, minimize debt by tracking new expenses.

A Year’s Supply of Free recorders at http://www.duck9.com/track-expenses.htm

Be wary of gift card traps. The pre-paid, stored value industry reports that 15% of cards are lost or never redeemed. Consumers should customize a gift certificate so that their card only gets charged when the purchase is made.

The internet presents consumers an answer in that people buy and sell things- now they can charge interest too. Person to person merchandise sold has been rapidly increasing.

In this person to person marketplace, consumers can charge interest rather than accepting a discount for cash. Interest is paid by and between sellers and lenders in the same way that items are bought and sold.

The Wall Street Journal has observed the Monday rush to go online is "Black Monday". Larry Chiang observes, "Clearly getting paid interest selling unsold auction items puts you in the right mind set of under consuming during the holiday season".

Book credit expert, Larry Chiang, for your TV or radio show. Below are exerpts from a recent show:

ABC Interviewer: Welcome Larry Chiang

LC: Hi, good morning.

ABC: So you're from duck9.com

LC: Yes, Duck9 is about digital underground credit knowledge. We think great credit tips are unpublicized.

ABC: So what does the digital underground say about this holiday shopping push? Lets start with the gift card.

LC: Well, gift cards are popular but not necessarily good for the consumer. For example, gift cards are marketed as "same as cash" when in reality, they're not

ABC: Really, how so?

LC: Cash doesn’t have expiration dates, limited stores to use them in AND cash doesn't get lost 15% of the time

ABC: That's interesting so what are some solutions?

LC: Well, consumer can shop for gift cards with no expiration dates and look for lost card protection

ABC: I read that your company also advises against momentum spending. tell us how to avoid this credit trap

LC: Momentum spending is when the more you owe, the less you want to know. When we owe $1000, we feel its ok to owe another $200. That's not ok. That's preventable by tracking holiday transactions on a check register. Your credit card should be treated same as cash.

ABC: What about getting paid interest vs. paying interest?

LC: As you know, more consumers are selling things online. Well, a result of this is that consumer sellers can charge interest for items instead of taking cash up front. It's also great for children to learn

ABC: I am confused- so for items sold, interest is charged?!

LC: Yes for example a $300 video game console. It can cost $100 down and $250 over time. Children can easily calculate the $50 in interest could have been used on one new game. That is pain they feel. That's a great lesson learned

ABC: Right, so our children can see the pain of paying interest vs. getting paid interest.

LC: Yes, there's a right and wrong side of the interest rate equation. This lesson firms up and brings home the hard realities of money. Save now to enjoy more OR enjoy NOW and pay way more.

ABC: Hmm, does this mean my six year old will stop saying, "I want it NOW"

LC: I can't guarantee it, but it’s never too early to teach the concept of interest

ABC: Thanks Larry

# # #

650 566 9600

media@duck9.com for other interview opportunities and expert resources to keep credit healthy during the holidays.