Holidays
CONSUMERS BRACE FOR HOLIDAY COSTS Budget, save, don't use credit cards, experts recommend
Avoid the temptation to charge up your credit cards.
"What looks like a good deal now may not be when you factor in the 20 percent interest they charge," Dvorkin said.
If you put your back-to-school expenses on a credit card and have no idea how you'll pay for the coming winter holidays, consider going to your bank or credit union and getting a loan, instead of maxing out your plastic, Hankins said.
"Credit cards have the highest interest rates outside of payday loans and pawnshops," she said.
But try to pay with cash if you can. When you use cash, you tend to spend 15 to 20 percent less than if you're using a credit card, Love said.
"I think it's psychological," he said.
· Examine your expenses and cut out unnecessary items that are not "absolute necessities," Hankins said.
If you're unable to save any money, consider going to budget or credit counseling, she said.
· If you do take out a loan to pay for the winter holidays, plan to pay it back before next year's Christmas, Hanukkah or Kwanzaa season. At the same time, make sure you start saving so you don't find yourself in the same predicament in 2007, Hankins said.
· Consider using a holiday or Christmas club account at your bank or credit union as a way to force yourself to save, McBride said.
Where to get help
www.consolidatedcredit.org The Web site has a Learning Center that contains free, downloadable booklets on how to manage your money better, including a "Holiday Survival Guide."
The El Paso YWCA's Consumer Credit Counseling Service offers debt-management services, credit counseling and personal-finance education classes. The service is also available in Las Cruces and Alamogordo. Information: 577-2530 in El Paso and (505) 532-1222 in New Mexico.
www.valueyourmoney.org. A free budgeting worksheet is available.
www.bankrate.com. The site has a free search engine to help you find high-yielding savings and money-market accounts. The site also has a free "holiday spending""worksheet.
