Last Chance to Avoid Last-Minute Holiday Debt

Freedom Financial Network Offers 5 Tips to Avoid Financial ‘Holiday Hangover’

(PRWEB) December 15, 2005 -- The holidays are just around the corner, and if you’re like many Americans, you’re in the thick of your holiday shopping. Yet there’s still time to make smart financial choices during the gift-giving frenzy – and even find some advantages to late shopping, says Brad Stroh, co-CEO of Freedom Financial Network, LLC.

According to the International Council of Shopping Centers, fully 20 percent of holiday gifts are purchased during the week before Christmas, and the two weeks before Christmas make up 40 percent of the gift-buying time.

“If you’re shopping at the last minute, it’s easy to think quantity rather than quality, but it is still possible to make great decisions that won’t leave you with a financial hangover in the New Year,” Stroh says. Here’s how to stay smart in the 11th hour:

1.    List your gifts – Don’t fall victim to feelings of guilt at not achieving Martha Stewart-like perfection in your gifts, or not having finished before Thanksgiving. It really is the thought that counts, so write out a list of whom you’re buying for and what you’d like to get for them.
Late advantage: You’ve had plenty of time to see what’s out there and hear what others are doing to provide some creative ideas.

2.    Don’t forget to budget – Determine how much you can afford to spend on gifts. Especially with the doubling of credit-card minimum payments that takes effect with most creditors this quarter, you’re best using cash or sticking with an amount you can pay off the same month. And don’t forget the cost of holiday entertaining. “If you throw a big open house each year, that’s a great gift of friendship – and you might consider yourself exempt from gift-giving to those you invite,” Stroh suggests.
Late advantage: You have both gifts and entertaining options – maybe dinner with the in-laws would be more appreciated than another toaster.

3.    Think gift card – An advantage of gift cards is their fixed dollar amount. Be your own “gift card Santa”: Setting and keeping to a spending limit for each person can be easier with gift cards.
Late advantage: You’ll be inspired to power through the list and find it easier to stick to your limits.

4.    Buy in bulk – Look for stores where you can pick up gifts for several people on your list at once, and look for two-for-one sales – if they fit the people and items on your list.
Late advantage: It’ll make your shopping quicker, and allow you to leave stores before you’re tempted to overspend.

5.    Try online – Shopping online has the tremendous benefit of not allowing too much impulse buying. Take your list to the computer and knock out shopping with a few clicks of the mouse. Caution: Beware of last-minute shipping charges, which can blow your budget out of the water. But if you have time, many Web sites offer free shipping up until a week or so before Christmas.
Late advantage: Last-minute sales, plus no temptation in the stores.

With these tips, you can make it through with your credit card, and credit, unscathed – and ring in the New Year without fear of the dreaded financial “holiday hangover.”

Freedom Financial Network, LLC (www.freedomfinancialnetwork.com) provides consumer debt resolution services through its Freedom Debt Relief and Freedom Tax Relief divisions. The company works for the consumer, negotiating with creditors to lower principal balances due that can often result in savings of up to half the amount owed. Based in San Mateo, Calif., Freedom Financial Network serves more than 4,000 clients nationwide and manages more than $120 million in consumer debt, offering an alternative to bankruptcy, credit counseling, and debt consolidation.



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