Holiday Season Shopping Tips for Recession Budgets

The holiday season is fast approaching. Our goal is to help provide information that will help consumers accumulate less debt then they usually would. Understanding peoples dependency with credit cards and responsible usage is important. Due to this financial downturn we should all beware and practice responsible spending and credit card charges. I probably do not need to state the obvious, but Americans are addicted to there credit cards. It is a fact! It seems our society feels that credit is free cash, due to the fact that bills only come once a month.

During the Holiday season if you catch yourself in the act of any one of these behaviors, then it is time to reevaluate your buying methods.

Having debit card and a credit card, it is better to use the credit card to make a purchase

Owning more than one store credit card

Paying only the minimum balance

Spending more than you earn in a pay period

Trends are showing that we have become more fiscally conservative, but remember it is all relative. If this financial crises has told us anything it is that money does not grow on trees. The question arises, if one catches themselves in the act what should be the course of action. I will be the first one to admit that I have fallen victim to these same behaviors. After talking to a few behavior specialists there is a simple behavior modification that is easy to change. We want to keep you from becoming a shopaholic!! This is not suppose to discourage people from using credit cards, but the goal is to emphasis responsible credit use so people reduce irresponsible actions of over leveraging. Or simply "Just Make Smart decisions".

The approach should be detaching yourself from irresponsible credit card practices. Reviewing your credit card statement is a good indicator of spending habitats. Being conscious of buying trends will help change these practices. This will help with awareness to credit card addiction by allowing for greater success saving money and will create financial security. Smart purchases that are attached to payment plans will build your credit and will be financially beneficial for growth in the future.

Real life Example:

By: Robin H

"When I graduated from business school I was lucky enough to get a job that paid well, and more than I had ever made in the past. I was living in Chicago, and working right downtime - in the midst of some of the best shopping I'd ever seen. It wasn't long before I had set up credit cards in several of my favorite stores. Although I tried to be smart about what I purchased, it was exciting to finally, after several years, be able to buy things for myself. The problem was, with too many cards to keep track of, I slowly but surely ended up with mounting debt.

My Dad came to visit and I asked for help. He made me give him all my cards, went and got some scissors, and then he cut them in half, one by one. I was lucky - I was able to pay things off before it got completely out of hand, with the encouragement of my father. If there's one lesson I've learned, it's be smart about credit, and even smarter about debt. Today I find that I can get by with one card, purely for the convenience of not having to carry a lot of cash."

(source: http://www.lifetuner.org/topics/19-credit-cards/stories/38-too_many_credit_cards)

Credit cards should be used by creating two kinds of strategies which are, for emergencies that you have a long term payment plan (ie. car problems, house bills, etc), and small personal and every day necessity shopping that should also be adjust to budget a short term plan when making purchases. As we all now credit card debt piles up and before you know it is unmanageable.Need some help with your credit score? Find out more about our Credit Restoration Process.