OLATHE, Kan. – Missy Dearasaugh has three children ages four, six and eight plus 13 cousins, teachers, coaches and special friends to shop for this Christmas.
“I do it all using cash,” smiles Dearasaugh confidently. “We don’t use credit cards for Christmas.”
Dearasaugh doesn’t have a dollar amount in mind, but says it will likely be less than what the average American tends to spend.
Last year, the average American spent $630 on gifts with another $200 on holiday-related expenses like travel and food.
Christmas sales were down last year and retailers are bracing for a repeat season, perhaps with good reason. New surveys show 58 percent of those polled are worried about the cost of Christmas this year. Seventy-one percent also admit it doesn’t feel like the time to be buying presents.
But hold onto that humbug!
With frugality in mind, we scoured the Internet for tips, interviewed a consumer credit counselor and a financial planner, plus got some grass roots advice from a metro family with lots of Christmas shopping experience.
Missy Dearasaugh and her family practice five key things each year to avoid a holiday hangover.
1. Cash Only – No Credit
Using cash, and avoiding credit when holiday shopping, is the number one tip consumer credit counseling expert Jana Castanon gives. “Research shows a quarter of all Americans who use credit at Christmas take 12 months to pay off Christmas,” explains Castanon, Communications Director for
Apprisen Financial Advocates.
She also warns to not be lured into getting a new credit card as it can give way to impulse buying and overspending. “By saving ten percent to open a credit card today, it can cost you a lot of money by the time you pay it off in the end run,” explained Castanon.
Robin Thompson runs
Budget Wise Consulting. She adds, “You’ll spend less when you use cash instead of credit.”
“Credit cards are not evil,” adds Castanon. “If you can manage your credit, make a pledge to pay off the balance in full in January, then credit cards can have some benefits in making exchanges.”
