First-Stop-Credit.com News

This year Black Friday, the day that is traditionally the start of the Christmas shopping season in the United States, is threatening to plunge many consumers into financial difficulties.

With many of the favourite Christmas lines, like the iPod and PSP costing hundreds of Dollars, it is easy to see how a middle-earning family can slide into a financial pit this Christmas.

“Consumers have typically been on the wrong side of the interest rate equation. On Black Friday, what do consumers do? Pile into the family minivan and splurge on items that they sometimes can’t afford,” said Larry Chiang, founder of United College Marketing Services, said in a recent television interview.

He suggested that consumers “avoid momentum spending” citing studies that illustrate that “when consumers fall deep into debt, there’s apathy towards new debt. To battle momentum, minimize debt by tracking new expenses.”

Here are a few more tips to help you guard against putting yourself in debt this Christmas.

• Avoid gift cards - many pre-paid store cards (up to 15%) are either never redeemed or lost.
• If you want a gift card, get one that is only charged to your account when the recipient uses it.
• Search online for cheaper bargains before impulsively buying.
• Plan ahead and don’t leave your shopping until Christmas Eve!