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December 6, 2007
Purdue expert: Make a list before charging into holiday shopping
WEST LAFAYETTE, Ind. - Three steps can help you avoid piling up credit card debt during the holiday shopping season, says a Purdue University Extension specialist in the Department of Consumer Sciences and Retailing."Make a plan, set limits and keep track of what you're doing," Elizabeth Kiss says. "Decide how much you can afford. It's especially good to let the entire family know there will be one or two big things and the rest may be smaller. "
Kiss says purchasing expensive gifts may not be necessary for everyone on your list.
"Think carefully about who all you need to buy a gift for and what's expected," she says. "Does a person really want a gift or would they really prefer to spend time with you, maybe have a dinner or something like that?"
Part of the plan can include a gift shopping strategy.
"Make a shopping trip and then make a buying trip," Kiss says. "Look around, see what's out there and check prices. Don't take cash, credit cards or the checkbook with you. You can also do this with catalogues and online. Then you can make a list and go out and buy things."
And don't forget that gifts are only one part of holiday spending.
"A detailed plan gets people to think about more than just gifts," she says. "There are cards, gift wrapping, postage, decorations, holiday meals, parties and travel."
A survey by the National Retail Federation shows that 40 percent of holiday shoppers will use debit and check cards, 32 percent will primarily use credit cards, 22 percent plan to use cash and only 5.5 percent will use their checkbooks.
If you do use credit, Kiss advises using credit cards with the lowest interest rates, even if you intend to pay it off quickly. She also says it's best to use just one card because it's easier to track and control spending.
Kiss has another tip if you use a credit card to buy gifts.
"Write your limit on an envelope and put the envelope in your wallet," she says. "When you use your credit card, write the amount you spend on the envelope and subtract it from your limit. Use it as a ledger. Keeping a running total will help you keep track of what you're spending. When you have reached your limit, stop using your credit card. You can put the receipts from your purchases in the envelope. That helps you keep track of the receipts and your spending."Writer: Greg McClure, (765) 494-9394, gmcclure@purdue.edu
Source: Elizabeth Kiss, (765) 494-8299, dekiss@purdue.edu
Purdue News Service: (765) 494-2096; purduenews@purdue.edu
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