Written by: Chad Van Horn | Van Horn Law Group
“Jingle bells, jingle bells, my money’s gone away! Holy smokes do you know the interest I have to pay?”
Okay, nobody’s trying to Grinch, but it’s time to talk about having a financially responsible holiday season. Nerdwalled and the National Foundation Credit Counseling released their 2015 Consumer Financial Literacy Survey and the results can make a lawyer specializing in bankruptcy sigh. Some of the key findings are:
40 percent of respondents have a budget and keep a close eye on how much they spend. Of course, this means that 60 percent do not have a budget. Of those who did not have a budget, 46 percent said that they have a pretty good idea of their expenditures. 71 percent said they pay all of their debts and have no active collections against them. 24 percent admitted to not paying all their bills on time, with 16 percent missing the occasional payment or sometimes struggling but clear of collections. Six percent are getting calls from collectors, and one percent is thinking about filing for bankruptcy or has filed in the past three years.
Despite this, holiday shoppers are going to spend an average of $805 each on gifts this season, in some cased aided and abetted by offers from their credit card companies. This is leaving out all the other holiday expenses such as decorating, travel and driving expenses, and even gift wrap! It makes Festivus look like a good alternative. Now, before the shopping momentum can kick in, here are some tips to help you make it through the holidays without going into the hole – or making your current hole deeper.
Get a good artificial tree . That tree you hunt out of a parking lot or order online every year can run you a anywhere from $50 to $150 depending on height and freshness. An artificial tree doesn’t have that great pine scent, but it will save you in the long run and now shed needles all over your carpet. Buy wrapping paper, tissue paper, gift bags, ribbons, and other wrapping supplies at the dollar store. Layaway! Yes, it’s an old retail idea, but it keeps you from slapping those presents on your credit card. There’s a lot of national stores that offer layaway, and even an online version called eLayaway . Set and stick to a budget for each persona and each gift that you buy, shop online, or avoid the last minute rush of shopping, when you’re going to buy anything that you can. Giving gift cards is a great way to stick to that budget. Make your gifts! Everyone loves a plate of home-made cookies , or something hand made .
Finally, if your situation is not going to be helped by tips and tricks, and you really are that far in the hole, it’s time to stop digging and time to get out of debt. You should not feel ashamed to say that you’re digging out of a financial setback. It’s a very responsible thing to do. Finally, if you need to consult about your debts , give us a call and let’s see if we can find you some holiday cheer.
