PRESS RELEASE

Dallas - December 7, 2009 - While many economists are claiming the recession is over, most consumers are still feeling the impact to their finances in some way. With Christmas right around the corner, consumers are facing more pressure to complete their shopping and further tempted to purchase items they can't afford using credit.

For those shoppers who plan to use credit cards this year, it is important to know the ins and outs of shopping with plastic this holiday season before you head to the stores.

"It is very important to review your credit accounts frequently to make sure your credit limit isn't being cut, or your interest rate isn't rising," said Todd Mark, vice president of education for Consumer Credit Counseling Service of Greater Dallas (CCCS of Greater Dallas). "We highly recommend that you never spend more than you can pay off in three months time, at the most. But if you aren't using your credit as you do cash - paying off on time and in full at the end of the month - beware… you could be paying a higher interest rate in January for things you bought in December."

CCCS of Greater Dallas shares the following five tips for consumers to shop wisely with credit this season:

1. Know before you go. Check your most recent statement to find out your current limit and balance before you begin shopping. If your credit limit has been lowered, you will be notified in your statement.

2. Protect your credit score. Remember that a credit utilization ratio of more than 50 percent will damage your credit score and limit your access to future loans. Know what the ratio means in dollars on each individual card and your overall cumulative credit lines, and don't exceed that amount. You'll be upset if some toys your kids may not even play with a month from now ruin your ability to make a larger purchase in the future.

3. Avoid going over your limit. While some creditors will let you go somewhat over your limit, this is never a good idea. That creditor will also charge an over-the-limit fee and possibly raise your interest rate.

4. Don't open department store credit cards just for a discount. While a store discount may be tempting when money is tight, opening new credit when you don't need it (especially at department stores) will increase your total credit available, making you an even riskier borrower. If you are looking to open an additional credit line, make sure that decision is based on terms, interest rates and rewards programs, and not a 10 percent discount at the register.

5. Only charge what you can afford. Limit any charges to purchases you can easily pay off within three months. The longer you carry a balance, the more damage you do to your credit score and the more debt you build with compounding interest fees. Ideally, only charge what you can pay off on time and in full every month.

"Credit cards offer valuable protections such as charge back rights, which come in handy during the gift giving season," Mark said. "However, if you are already burdened with debt or don't have the discipline to charge within your holiday budget, it may be best to use cash."

CCCS of Greater Dallas offers free financial education. To schedule a class at your location or attend one of their onsite free seminars, call 1-800-249-2227.

About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a nonprofit, community based credit counseling and debt management service. Established in 1974, CCCS of Greater 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 of Greater Dallas is a HUD approved housing counselor and serves as one of eight counseling agencies supporting the 888-995-HOPE Hotline. The agency is also a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. To learn more about CCCS of Greater Dallas' free seminars or the agency's services, visit www.cccs.net.