The Bottom Line
By Susan L. Smith,
Director of Training & Financial Education

Meet Susan L. Smith:

According to the National Retail Federation, the average person spent $889.62 for holiday gifts in 2006. Since approximately 72% of us shop in the month of December that's a large percentage of take home pay for that month. That has to throw your finances into a jingle that will last for months.

If your net income is $2,000.00 per month, that's 44% of your available cash. If your net income is $3,000.00 per month that's 30% of your available cash.

Paying by credit card is not bad, if you can pay off the bills in no more than 3 months. And, of course, you can't use the cards for anything else until you pay off the Christmas debt. Right!

You've read over and over the things you should do to make holiday shopping easier. But it's hard to do when other emergencies get in the way. This is a great time to plan for next year, but first let's talk about this year.

First, make a list. Yes, the tiresome list. If you have 4 gifts to buy, that's manageable, but what if you have 10 gifts to buy? Now what? Take a look at your budget and decide on a realistic amount you can spend on gifts. Obviously the number of gifts you have to buy makes a big difference. Think about an IOU for parents and close relatives. You can do a chore (I'd love to have my car washed a few times during the year) or take them to dinner later in the year. That spreads the cost over a longer period of time. When buying for children, think about all the other gifts they will receive and keep it small. Be creative instead of expensive.

This is the year of the gift card. Please do your homework and research the gift cards you plan to buy. Beware of service fees, expiration dates, declining value, stolen account numbers and online scams. If it sounds too good to be true……

Sometimes circumstances dictate a very frugal Christmas. You know what, that is ok!!! You will have many more years to catch-up, if you feel it's necessary to catch-up. Usually family and friends understand financial difficulty and have probably experienced it themselves. Giving of yourself doesn't cost much and most times is received in the spirit that it is given. Think about it.

Now for next year, come on in and talk to a CCCS counselor. Establish a plan to pay off existing debt and save for next year. It can be done and it won't hurt very much. I promise.

Our locations are listed on this website.

Susan L. Smith, Director of Training & Financial Education of Consumer Credit Counseling Service of Greater Dallas. You may email her at TheBottomLine@cccs.net.