It’s the season to max out your credit cards.
But not if you can help it.
As the holiday shopping season gets underway, personal bankruptcies are on the rise, and some people are still paying off the tab from the 2009 holidays.
Still, retailers predict shoppers will spend more than last year, sending two out of three Americans into debt to pay for this year’s holiday gifts, according to a survey by .
It is possible to stave off a holiday spending hangover, however, and avoid visits from a debt collector who may not be jolly.
Start by remembering the point of the season, said Lars Gilberts, director of the United Way Center for Financial Stability in Northwest Miami- Dade, Fla.
“What are the things that are really important to you? That battery-operated blinking thing is probably not it,” Gilberts said. “You enjoy the holiday season not because of things. You care about people.” Resisting the urge to cave to consumerism has already proved a challenge for some. Deals on Justin Bieber paraphernalia, Sing-A-Ma-Jigs and combo egg poacher-toasters have been flooding stores and websites for weeks.
But Joan Robinson of Davie, Fla., said paring her holiday spending plans was a no-brainer this year — even though the past few years were already trim. Two years ago, she said, though the family decorated a Christmas tree, there were no gifts underneath it.
“We took them to church and celebrated just what it was about,” said Robinson, a mother of six kids ages 9 months to 20.
This year, she’s not hosting a Christmas Eve party, and not everyone’s name is going into the hat from which everyone in her large extended family picks for a gift, cutting back on the number of presents she’ll have to buy.
“I just don’t have it,” said Robinson, 38, a detective who said she hasn’t had a raise in six years.
So it’s not too late to change expectations about what has become a season of stuff, Gilberts said.
“If people feel like they’re sacrificing, there’s not really a way to be happy about it,” he said. “You have to develop a new way of thinking about things.” For example, don’t just cut back on gifts for kids this year, he said. Put some of what you’d have spent on toys or technology with short shelf lives into their college savings account as an investment in what’s more important than an immediate want — and tell children what you’re doing. Whatever gifts you do buy, consider durable ones that will be interesting, and functioning, months from now, such as a bicycle. Buy presents the family can enjoy together, such as a game.
For relatives who live out of town, instead of individual gifts, Ashley Labrie of Pembroke Pines, Fla., bought something for the whole family: a movie-night basket she put together on a dime.
“I got a white ceramic popcorn bowl from Crate & Barrel at Goodwill for $2 and stuffed it with candy bars, on sale at Walgreens, popcorn, buy-one-get-one-free at Publix … three pre-viewed movies for $20 at Blockbuster,” she said.
Labrie, 26, said paring her holiday spending plans was a no-brainer this year. For the first time, she’s not paying her credit-card bill in full. The reason: huge medical bills for her dog, wedding expenses and a determination to save money despite all of that.
“My fiance and I were talking last night about not doing gifts this year and setting the money aside for the wedding and Tippy’s surgery instead,” she said. “We know that we care for each other, so there’s just no reason to spend money on the holidays when we have bigger things to save for.”
Being smart about the big shopping season begins in childhood. Do not teach kids that they will get whatever they want as long as they behave, Gilberts said. And if they are buying gifts for friends, help them create a budget they must stick to, just as adults must do.
In addition, Gilberts suggested planning for all your holiday spending, factoring in travel expenses, food, decorations and parties at the office — not just budgeting for gifts. The overall price tag could be shocking and lead to paring down some spending.
If you can, shop online, he said. It keeps you out of malls and less likely to buy on impulse, and it’s easy to compare prices and know whether you’re getting a good deal.
When you do hit the mall, the National Foundation for Credit Counseling suggests not taking all your credit cards and your checkbook. It keeps them from getting lost or stolen — and keeps you from using every form of payment available, which could trim purchases.
The group advised gift seekers to shop leisurely — not in a hurry, which can trigger purchases of desperation and ignoring prices.
Instead of giving store-bought gifts, the organization suggested writing a heartfelt note to those on your list, being sincere about your feelings toward them and why they mean so much to you.
“Most people can’t recall what they received last Christmas,” the group said, “but this will be a treasured gift remembered for years to come.”
