Enjoy a Debt Free New Year

Debts are the worst curse that can befall on an individual.As the debt rates are growing at an alarming rate the whole nation is concerned. Debts tend to get skyscrapping especially during the festive season. This article tips you to avoid debts and also brings to your knowledge the debt statistics in the past couple of years.

(PRWEB) December 28, 2004 -- Christmas is here and the New Year 2005 is knocking at your door. Surveys indicate that consumers probably will spend more during the holidays than they did a year ago. Be sure not to get carried away to the point that you wake up in January with a financial hangover. After all the New Year will not be a welcome happening if the bills in January puts you in debts. But sometimes things are beyond our control.

An in-depth study of the consumer behavior states that the 11th September attacks in 2001 also affected the American consumer's view of the holiday season. "Sept. 11 changed our behavior, getting us to look more at the nucleus of the family, and realizing that it's more important to get together than worry about the perfect gift," says Marshal Cohen, chief analyst for The NPD Group, a marketing research firm that specializes in the retail industry.

A survey conducted by the International Mass Retail Association in the month of December 2002, states that women outspent men, with their household averaging $ 1,742 compared with the mens average of $1,375 per household. This was a stark contrast. The highest spenders in 2003 were consumers in age group of 25 to 34, who averaged $2, 216 per household. Further it was stated that customers had their best shopping experiences at discount department stores. Thirty-six percent of surveyed consumers said that discount department stores had provided them with their best shopping experiences. Department stores came in second with 22% of the vote, followed by specialty stores, which were named by 7% of consumers.

The Consumer Federation of America and the Credit Union National Association said in their fifth annual survey that 17% of consumers plan to increase their spending this year vs. 15% last year.

With an alarming rate of debts over the last decade your desire to avoid monetary crunch, is a sure thing. Thorough survey of a website states that, almost 48% of the net surfers desired to get surplus information on debt reduction in order to break free from their credit nightmare. The total consumer debt amount in U.S. in 1999 was 1530.3 billion dollars and it has grown to 2011.3 billion dollars in 2003 at the rate of 10% per year.

The latest news in consumer shopping states that smart shopping is in hype in the United States at the moment. People are making it a point to spend more time in purchases rather than doing something whimsically.

We equip you with a few steps which will keep you free from debts:

Fix your budget: Be rational and practical about your affordability limits and never go beyond your means. Follow your budget plan religiously and you will not be under any debt pressure. While planning a budget keep the priority purchases in mind.

Plan early: Never go for hasty shopping. Window shop and browse through various catalogs before you actually start buying. Cross-check the price range in different stores.

Make a shopping list: Write down the number of head you need to gift and your budget for each of them based on the study of catalogs suggested earlier.

Talk to your kids: Be open with your kids. Let them know how much you can afford to spend and explain them the reasons behind it. They are more resilient than we give them credit for.

Follow the list: It is ideal to go for shopping with a list. This reduces emotional and impulsive buying. This also helps you to stick to your budget and keep a track on your spending.

Mode of spending: Avoid using credit cards or loans. According to The Wall Street Journal, consumer debt stands at 17% of personal disposable income, up from 15.9% in 1994. Many financial planners feel that consumer debt should be no higher than 10%.

Save for festive seasons: Put away money each month in a Christmas fund, so the holidays will be a time of joy and festivity instead of financial trauma.

Compare APRs: If you've paid for Christmas on your credit cards, check the interest rates on those cards. Compare all the available rates and look for the lowest APR or other promotions. Read all the details. This could make significant cost savings.

The latest survey says that majority people are celebrating Christmas happily with family and loved ones and is spending wisely and rationally rather then being whimsical. The good news at this end is that the families are celebrating the festivities as a unit and hardly anyone is heard of spending it alone.

Have a prosperous and debt free life in 2005.

To equip your mind thoroughly and for better insights in debt related matters view: http://www.debtconsolidationcare.com

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