Black Friday traditionally signals the start of the holiday shopping season, but with many people still struggling with tough economic circumstances, Citizens Bank is offering holiday spending and budgeting tips for consumers.
Citizens hopes the guidelines will help consumers manage their money and prevent the accumulation of debt, which can cripple household finances.
“While there are signs of an improving economy, we’re expecting the holiday shopping season once again may be difficult for some families,” said Daniel K. Fitzpatrick, Citizens Bank’s president and CEO for Pennsylvania, New Jersey and Delaware. “Many get caught up in the enthusiasm of the holiday season, but everyone should take some time to plan ahead. That can help consumers take a more disciplined approach, which can limit overspending.”
Citizens Bank suggests the following guidelines for holiday shopping:
Set up a spending budget. Know spending limits and avoid impulse purchases. Be realistic and keep the budget manageable.
Make a list. Write down all the people and organizations to be recognized during the holidays, setting a spending limit for each name on the list. Refer to the list while shopping.
Don’t bring all credit cards to shop. Choose one or two cards to shop with and leave the remainder home. People are more likely to overspend when they have all their credit cards with them.
Use debit cards. Consider paying with a debit card rather than a credit card, because the money is deducted from your checking account right away and there will be no bill to pay later. A debit card is also safer than carrying cash. Some banks, such as Citizens Bank, have debit cards that give back to the consumer by offering reward points that may be redeemed for gift cards at popular retailers, brand name merchandise, free travel and more.
Use credit cards wisely. Try to pay off the credit card bill every month. Those who can’t pay off the card each month should use a card that has a low interest rate. Also, it is wise to use cards that offer reward points, airline miles or other incentives.
Write down credit and debit card information. Make a list of all account numbers and phone numbers for cards in case a wallet is lost or stolen. Keep this list in a safe place in case there is a need to notify the bank or credit card company.
Consider layaway plans. Some retailers are reviving layaway plans for people who want to purchase merchandise but cannot pay in full immediately. Be sure the terms are clear, and there are no additional fees or interest.
Be careful: The payments may be deferred, but you will still have to pay them.
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