Careful Planning Helps Avoid Holiday Spending Hangovers

Holidays are a time of joy and merriment. However, it's hard to be merry when you're worrying about your rapidly growing credit card statement. With the following tips from Novadebt, consumers can take proactive steps to stop holiday debt before it starts.

FREEHOLD, NJ (PRWeb) November 29, 2006 -- Holidays are a time of joy and merriment. However, it's hard to be merry when you're worrying about your rapidly growing credit card statement. On Black Friday 2006 alone, consumers spent nearly $9 billion, with more of them hitting the stores over the next few weeks.

"We are truly urging consumers - especially those that have worked to pay down their credit card debts over the past year, not to overspend this holiday season," says Diane Gray, Director of Education at Novadebt, a non-profit, social service agency that specializes in financial education and credit counseling. "The root of most post-holiday debt is a lack of planning, and while Black Friday has passed us, it is still not too late for people to avoid making financial pitfalls before the end of December."

With the following tips from Novadebt, consumers can take proactive steps to stop holiday debt before it starts:

•Decide your spending limit in advance and stick to it. Make your holiday gift list early and set a specific amount of how much you can spend on each gift to remain within your budget.

•Purchase gifts with cash or debit cards rather than on credit cards to avoid future bills. According to the National Retail Federation, consumers are using their debit cards more versus credit cards this holiday season. use has increased. If you do use credit for some gifts, make concrete plans to pay off gift purchases by February, before tax time hits.

•Avoid last minute shopping. Decide early what you want to get each person on your list. Taking time to shop for that item can eliminate a desperate, last minute and often expensive choice.

•Once your list is done, stop shopping. When every loved one on your list has that special gift, and your holiday spending limit is reached ... stop shopping. With holiday cheer still in stores, this is often easier said than done for many consumers.

•Put your plan in action. If you feel you have already overspent your holiday season, and see it as a continuing trend in your life, take the time now to set a clear financial plan with goals for next year while the season of giving is still fresh in your mind. Having a plan in place ahead of next year's holiday season will help avoid costly pitfalls, and allow you to buy gifts ahead of schedule and avoid the crowds.

By following these steps, you can take charge of your financial spending and avoid the seasonal stress that gets in the way of enjoying what the holidays are really about: spending quality time with friends and family.

Since its inception in 1991, Novadebt helped over 250,000 people to regain their financial footing and repay approximately $340 million to their creditors. Novadebt maintains an average active caseload of approximately 15,000 consumers at any given time. A non-profit, social service agency licensed and bonded by the New Jersey Department of Banking, Novadebt is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA) and the Better Business Bureau. The United States Government recognizes Novadebt as a charitable organization under 501© (3) of the IRS Code. All of the agency's counselors are certified by the Institute of Personal Finance.

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