Press Release

Dallas - October 22, 2007 - In an attempt to lure consumers, marketers are capitalizing on every holiday from October through the New Year tempting Americans to spend money on everything from decorations to gifts. With Halloween just over a week away, Consumer Credit Counseling Service (CCCS) warns shoppers of scary financial mistakes that can spook you for years to come.

According to the National Retail Federation's Halloween Consumer Intentions and Actions Survey, conducted by BIGresearch, consumers are expected to spend more on Halloween this year than last year, with the average person planning to spend a frightening $64.82 on the holiday compared to $59.06 one year ago. Total Halloween spending for 2007 is estimated to reach $5.07 billion. Furthermore, spending for the 2007 holiday season is expected to reach $474.5 billion.

"Each holiday, consumers are lured into spending money. Halloween is not an exception and it literally kicks off the 'spending season,'" said Gail Cunningham, vice president of business relations for Consumer Credit Counseling Service of Greater Dallas. "In addition to helping consumers prepare for this busy shopping season, CCCS offers financial education and tips for consumers haunted every day by bad credit."

With the kick off of the holiday spending season, CCCS reminds consumers of six scary financial mistakes to avoid:

1. Don't be "tricked" by a not so money-saving "treat" that comes along with applying for store credit cards. Retailers know consumers are worried about spending too much money during the holidays and that they can be easily convinced into applying for a credit card that only offers a 10 percent discount on the first purchase. Know that the more credit cards you have, the more likely you are to charge on each one. Holding too many store cards can also lower your credit score.

2. "Monster" debt will pile up if you don't plan ahead. It has been said that nobody plans to fail, they just fail to plan. Those words certainly ring true when it comes to getting out of debt after charging gifts, decorations and groceries throughout the holiday season. Plan smart and plan early, and come up with a plan that is easy to stick with.

3. Don't be haunted by holiday pressure. With all the stress and expenses that come along with the holiday season - children wanting the latest gadgets, preparing your home for holiday visitors and planning menus for family and friends - debt can easily grow to a level that will seem ghostly after the holidays are long gone. Take a deep breath and remind yourself and your family what the holidays are truly about - a time to celebrate the year and spend time with loved ones.

4. Don't put another nail in the coffin by charging all purchases when there's no money in the bank. If you have no money left after paying your bills, you are headed for trouble and definitely should NOT charge your holiday purchases. It is a bad idea to routinely rely on your credit cards when you don't have the cash available. As a general rule, you should not be spending more than 20 percent of your take-home income on credit card bills or loans, and this includes your car payment.

5. You won't RIP if you pay the minimum payment on your credit card. CCCS recommends paying at least double the minimum required payment. A lot of cards come with high interest rates and only paying the minimum due will cause you to pay more in interest, and extend the term of your debt. If you are unable to pay more than the minimum payment, seek help from your local CCCS office now rather than after the holiday shopping season when it will be an even greater problem.

6. Avoid getting "six feet under" in debt. According to the Center for Consumer Financial Services, Rochester Institute of Technology, between 1996 and 2006, non-mortgage consumer debt jumped from $1.24 trillion to $2.39 trillion. Today, the 60 percent of households with "revolving" debt (nearly $800 billion) owes an average of $13,000 on credit cards plus $1.5 trillion in installment loans. Remember these numbers when you're shopping this holiday season.

So now you've seen the bad news. Don't get scared - there is good news. CCCS can help you create a plan you can live with, one that helps you budget your money this holiday season so you and your family can have a happy New Year. What a treat that will be. Contact your local CCCS office for more information on financial education and free debt seminars, or call (800) 249-2227 or visit www.cccs.net.

About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a non-profit, community based credit and debt management service. Established in 1974, CCCS Dallas and its affiliate offices provide financial education and counseling to consumers in-person, by phone, or Internet through their 24 locations in four states. CCCS Dallas is a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. For more information, visit www.cccs.net.