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5.0 MANAGING YOUR CHRISTMAS BUDGET; CUT AND REDUCE CHRISTMAS SHOPPING EXPENSES.

5.0.1 CREDIT CARD HANGOVER

It happens every January to a lot of people just like you. You wake up on an ordinary cold gray day early in the month and remember that you enjoyed yourself over the holidays. You realize that you probably ate a bit too much, partied a bit too hard, but after all what are holidays for?

And then there are all those presents that you gave to and received from friends. What are you going to do with four new ties or three boxes of candy?

All this seems pretty harmless until you get your credit card bill or glance at your check overdraft protection statement. Without realizing it you have spent hundreds of dollars more than you meant to. What can you do? At the moment nothing, except pay the minimum payment. Maybe next year you will get your holiday spending under control.

Some financial experts have labeled this "credit card hangover." At Savvy Discounts Newsletter we believe that much of credit card and other debt is due to uncontrolled spending during the holidays. If you charge $750 to $1000 a year for presents (an average sum for many households) and then let the balance ride, only making the minimum payment, you may find that you are over $10,000 in debt in about ten years. Even if you stop charging at the end of ten years and make the minimum payment, it could take you 20 years to pay it all off!

For a variety of reasons you may be spending more than you mean to at Christmas. Often it is because you are shopping at the last minute and have to buy whatever you can find. Other times you may decide you have to match the price of another friend's gift. And then you might just feel a bit guilty that you didn't do more for your spouse or your children so you buy a nice present to make up for it.

None of these is a good reason to spend more than you can afford. Going into debt can only hurt your family and your friendships.

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