Avoiding the Holiday (Over)Spending Blues
Ministry Partner of Intentional Living
The holiday season is a favorite time of year for millions of Americans - and understandably so. It is a time for celebration, spending time with family and friends and demonstrating appreciation and love by giving gifts. Unfortunately, it is often not until the holidays are over that many people begin focusing on the fact that it is also a time for overspending. In recent years, U.S. households have spent an average of $490 per year on Christmas gift buying alone. Many adults admit that they do not plan ahead for the additional holiday expense related to celebrations and gift giving. Consequently, this lack of planning often leads to overspending and credit card purchases. On average, Americans spend the first six months of every year paying off the holiday debt from the previous year. In many cases, the bills far outlast the gifts. These days, it is easier than ever to be approved for a credit card - even if you are already swimming in debt. In fact, organizations specializing in helping people get out of debt say that credit card companies actually target people with credit and debt problems with special low interest introductory offers hoping that they will use their new credit card to pay off existing debt. On average, American adults receive seven credit card offers through the mail each year, regardless of their credit history. And many people have the erroneous belief that if they are approved for credit they must be able to afford it. We know that unpaid debt can seriously impact our credit rating, but did you know that it also produces stress that can impact our relationships and even our health? Marriage counselors report that financial stress is one of the greatest contributing factors to marital conflict and divorce. Also, a recent research study conducted by Ohio State University found that people who are feeling stress associated with debt are in worse physical condition than those without money worries. Paul J. Lavrakas, director of OSU's Center for Survey Research, and Patricia Drenetea, now an assistant professor of sociology at the University of Alabama-Birmingham, discovered a link between financial stress and health and reported their findings in the February issue of Social Science & Medicine Vol. 50 (2000). The authors concluded that people who worry about credit card bills were more likely to suffer from heart problems, sleeplessness, an inability to control emotions and a loss of concentration. Unfortunately, many people begin to experience financial difficulties during a crisis situation such as loss of a job, divorce, illness or death. During the crisis they turn to credit cards in order to pay for necessities such as groceries, medicine and even other credit debts. Before they know it, they are barely able to keep up with their minimum payments and feel that they will never catch up. This type of scenario helps to explain why approximately one out of every 100 households in the United States files for bankruptcy each year. Credit Card Facts: If you are struggling with the frustration and stress related to out-of-control debt there are organizations around the country that are uniquely equipped to provide you and your family with the help you need to get back in control - and many times the service is free! Controlling Your Holiday Debt Although it is unlikely that your holiday spending will lead straight to bankruptcy, it is important to be reminded of how responsible planning prior to the holidays can help you avoid the Holiday Overspending Blues. Keeping your expenses under control can actually result in stronger relationships, better emotional, spiritual and physical health and greater financial savings! Financial advisor John Moore offers wise biblical counsel on how to avoid overspending while at the same time making your holidays even more meaningful and joyous.
Dr. Todd E. Linaman is a licensed psychologist, author and the President of Relational Advantage, Inc. He previously worked at Family Life Communications, Incorporated as executive leadership. Go online to relationaladvantage.com to request more information, or receive more great articles by email.
This is more than just a Christmas list. It should include everyone who will receive a gift. It should also reflect an attempt to compare the amount of money available for Christmas shopping with the number of people for whom you must purchase gifts. This will help you to allocate your resources wisely and prevent last minute spending splurges that ruin a Christmas budget.
To really keep your Christmas spending under control, GO FOR THE GREEN! Pay cash. Research has proven that people who shop with a credit card are willing to spend as much as 30% more for an item than if they pay cash for that same item. Paying cash will also help you to avoid interest charges.
As you plan your Christmas spending, remember the less fortunate around you. One family has decided that after they determine how much they can afford to spend on Christmas each year, they will give one-half of that amount to less fortunate people in their community.
The most thoughtful gifts are those that truly communicate your love for someone and they are usually not the most expensive ones. The secret to thoughtful gifts is to be observant all year long to determine something very special for the people on your list. Thoughtful gift giving also helps to decrease impulse buying.
Remember, Christmas is a religious holiday. The celebration of Christ's birth was not designed as a marketing bonanza for merchants and retailers. It was meant to be a time of worship…honoring Christ for His commitment to save this world from its sin. Ask God to fill you with His wisdom as you make Christmas spending decisions.