Plan Now for Debt-free Holiday Season

Originally posted on LoveMyCreditUnion.Org

If the “spending ghosts” of Christmases past still haunt you, consider taking some proactive steps now to ensure you make wise choices this holiday season.

Make a preliminary gift list
Make a list of all the people for whom you’re considering purchasing gifts. Be sure to include colleagues, neighbors, your baby sitter and your hairdresser, in addition to family members. If your list at first seems long, don’t fret; you can always whittle it down. Next, assign each person a dollar amount and then total the amount you want to spend on gifts.

Craft a budget
Once you’ve determined how much you think you want to spend on gifts, consider drawing up a written budget for those gifts and any incidental items you want to purchase such as Christmas cards (be sure to include postage), a Christmas tree, decorations, crafts and any outfits you want to purchase for you or your kids. If you’re planning to throw a holiday party, don’t forget to include food and beverages. Next to each item jot down how much you’re financially capable of spending and then total the cost of all the items—gifts included.

Prioritize and think creatively
Can you throw a big Christmas bash and buy gifts for all of your nieces, nephews, colleagues and neighbors without going into debt? If your answer is “yes,” you’ll go down in the annals of Christmas giving.On the other hand, if your answer is “no,” re-visit your preliminary gift list and make some decisions about how you want to spend your money. If it’s important to buy just for the kids this year, think about some alternatives for the adults. For example, consider baking some cookies for your neighbors, or volunteer to faux paint or wallpaper a room. And for the friends in your life who are single moms, or for the couple who needs a much-needed break from their kids, donate a weekend of free babysitting.
Now that you’ve equipped yourself with a shopping plan, you’re ready to visit your favorite website or mall. Use these tips from the Federal Trade Commission (FTC) to help you shop wisely.

Smart Shopping Tips
1.Know who you’re dealing with. If you’re shopping online or by phone, confirm an address and telephone number in case you have questions or experience a problem with your order. Shop with merchants you’ve heard good things about. If you’ve never heard of a merchant, check their reputation and location with the Better Business Bureau.
2.Protect your privacy. Give personal information only if you know who’s collecting it, for what purpose and how it will be used. When online, look for the merchant’s privacy policy; reputable online merchants will clearly state privacy policies in an easily accessible place on the website. If you’re placing an order over the telephone, ask the customer service representative to explain the company’s policy.
3.Look for symbols indicating the online retailer uses security technology to protect your credit card number. An unbroken key or padlock at the bottom of your Web browser indicates your transmission (your credit card number) is protected.
4.Shop for the best deal. Don’t purchase your gift at the first retail store you see. The same holds true for Internet shopping. Use the site’s shopping cart feature to hold the item, and then take note of the item’s details and price and visit other sites. You may find a better deal elsewhere.
5.Look for price-matching and sale adjustment policies. Some traditional retail store merchants will match or even beat a competitor’s price. If you come across an item that’s not currently on sale, ask the merchandiser if he would be willing to give you a credit or discount when the item does go on sale. Be sure and ask what documentation you will need to provide to get the credit.
6.Watch for price scanner errors. Electronic scanning isn’t error proof. Human error, pricing difficulties and management problems together increases the likelihood of inconsistencies between advertised prices and the prices stored in the computer. What can you do to protect yourself? Watch the display screen for prices, bring a copy of the store’s advertisement to the checkout counter, and check your receipt before you walk away.
7.Keep good records. Retain store receipts and printouts of Web pages with details about your order, including warranties and return and refund policies. Your records can ensure reimbursement in case what you order doesn’t arrive.