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AVOIDING A CREDIT CARD HANGOVER THIS HOLIDAY SEASON
GreenPath Debt Solutions offers tips to keep credit in check

(FARMINGTON HILLS – November 5, 2009) - The National Retail Federation (NRF) recently released its 2009 holiday forecast, projecting holiday retail industry sales to decline one percent this year to $437.6 billion. While this number falls significantly below the ten-year average of 3.39 percent holiday season growth, the decline is not expected to be as dramatic as last year’s 3.4 percent drop in holiday retail sales nor as severe as the 3.0 percent decline in annual retail industry sales expected for all of 2009.

“As the global economy continues to recover from the worst economic crisis most retailers have ever seen, Americans will focus primarily on practical gifts and shop on a budget this holiday season,” said NRF Chief Economist Rosalind Wells.

GreenPath Debt Solutions echoes the importance of shopping on a budget this holiday season. “We encourage our clients to carefully budget their holiday spending this year and every year,” said Candy Wright, group manager, GreenPath Debt Solutions. “While credit cards can be very tempting to purchase gifts, they can result in a “holiday hangover” in January, when the credit card bills come due,” she continued.

During the upcoming holiday season, GreenPath reminds people to consider the following.

Before using credit:

• Plan for purchases in advance. Do you want to commit future income to monthly credit payments?
• Is the item you are considering purchasing with credit a need or a luxury?
• Learn to say no and mean it. Remember, we cannot have everything that we want. 
• Understanding your own weaknesses, when it comes to money. 
• If you know credit cards purchases are tempting, then don't carry the cards with you (but keep them in a safe place). 
• If you know you have a tendency to over-spend at the grocery store because you have over-draft protection on your checking account, make a list to shop from, and withdraw cash from the bank. Leave your checkbook at home. 
• Work toward the goals you have set. Does the credit purchase fit into your overall plan? 
• Weigh the pro's and con's of the purchase. Did you observe the "two-day rule?" (When you see something you really want to buy on credit, go home and think about it for two days. If you decide after two days that it is still a smart buy, and it fits into your budget, then go back and buy it.)

Shop around

• Look at various sources.

Read and understand the contract

• Read the contract carefully.
• Don't rush into signing anything. 
• Once a contract is signed, get a copy of it. 
• Know the penalties for missed payments.

Know your cost

• Figure out total price when paying with credit. 
• Make the largest payments possible. 
• Buy on installment credit only after you have evaluated all other possibilities. 
• Don't be misled into thinking small payments will be easy.

By observing these suggestions and planning ahead, we can kick off the New Year without a “holiday hangover.”