Make Plans Today To Avoid A Financial Hangover In 2008
Treasurer Markell Offers Tips For Financially-Healthy Holiday Spending
As Delawareans are decking the halls and filling the malls, State Treasurer Jack Markell encourages those shopping to make plans today to avoid budget and financial pitfalls next year.
"Delaware families' budgets are already stretched with ever-climbing gas prices, increased energy and interest costs, and holiday shopping can completely tip those budgets over the edge," State Treasurer Jack Markell said. "Delawareans are too often encouraged to shop until they drop, and to pay for those purchases, they are sometimes enticed to take out high-interest payday loans, quick-cash home refinancing offers, and other fast-cash fixes. Most often, these kind of offers are gift wrapped in a super-steep interest rate and can leave you paying for this year's present well into 2008."
The National Retail Foundation (NRF) 2007 report projects an overall sales increase of 4% over last year, raising national holiday spending to $475.5 billion with the average shopper spending between almost $800 to just more than $900 this holiday season.
"However you decide to pay for purchases, it's important to a map out a holiday budget to avoid a financial hangover that could take long into the New Year to resolve." Mr. Markell said.
The following are some tips that Treasurer Markell offers for financially-healthy holiday spending:
Have a plan and stick to it. Draft a realistic budget of the total amount of money that you can afford to spend on gifts for the entire holiday. Don't count on any expected bonuses, extra cash from expected gifts, or any other windfall.
Make a list and check it twice. Make a list of everyone that you plan to buy for with fixed dollar amounts that you've budgeted to spend. Don't be tempted by super deals and door-busters to entice you to deviate off of the list. Once off the path, it's easy to get lost in the woods.
Don't dig a hole for the holidays. Don't borrow money to pay for purchases by taking out a quick cash offer. Quick cash offers are just that -- quick cash for today. You have to pay it back, and the longer that you take to pay it back, the more in interest you may have to pay.
Know the facts about gift cards. While gift cards are literally the easiest way to stick to your budget, they can vary a lot. Be sure to check expiration dates and fees for activation, maintenance, inactivity and transactions.
Comparison shop. Stretch your holiday dollars further by researching sale flyers in newspapers and online for the best prices on the gifts on your list.
Track daily spending. Keep a running total of all purchases that you make. If you overspend in one area, deduct that from another area. Don't allow one misstep to throw your entire holiday budget off track.
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