Spread the holiday cheer without breaking your budget

COLUMBIA, Md., Dec. 1 /PRNewswire/ -- For many people, the holidays are the most wonderful time of the year--a special season for family, friends and festivities. But there's another side to the merriment: debt!

According to a recent Consumer Reports survey, 13.5 million Americans are still paying off credit card debt for holiday purchases in 2008. Think of it as a financial hangover--one that starts well before New Year's and snowballs throughout the year. The No. 1 culprit during the holidays is the seasonal debt trap. All the expenses of the holidays quickly add up.

CareOne Services provides a great online community called MyCareOne where consumers can find valuable tips for the holidays to help avoid the debt trap. The site features 11 bloggers with a variety of backgrounds from financial experts to stay-at-home moms. Consumers can also ask questions and share their personal savings tips at the site.

"We have great tools at CareOne to help consumers manage their budget throughout the holiday season, including party planners, tips for saving on decorations, shopping guides and more," says Jenny Realo, executive vice president of CareOne. "It is vital for consumers to create a strategy to keeps costs under control."

CareOne financial coach Suzanne says you don't have to be a scrooge to reduce holiday expenses. Suzanne has great advice to create holiday traditions on a budget.

• Set a limit. 'Tis the season for giving, but that doesn't mean you have to play Santa to everyone you know. Focus on buying presents for close friends and family only, and eliminate acquaintances and coworkers from your list. If you simply cannot cut down your gift list, homemade cookies, snack mix and other goodies are a great and inexpensive way to share the holiday spirit.
• Write it down. People who prepare a shopping list in advance are likely to spend less than those who don't. When creating your list, look up the prices of the items you intend to buy, and don't forget to include estimated sales tax, shipping costs and any other fees. Although you may need to adjust your list as you go, having a guideline for gifts will save you both time and money.

The CareOne MoneyMom advises families not to be afraid to ask for help with the meal preparation this year. Consider making your meal a potluck. Most people are happy to contribute, and by doing this everyone feels involved in the celebration. MoneyMom can help you save on entertaining.

• Plan ahead. Consumers often forget that gift giving isn't the only budget breaker. They make their shopping list for presents and forget about budgeting for food and holiday entertainment. Create a spending worksheet and think of all the areas for which you need to set aside money.
• Shop around. Once you've made your shopping list and budget, don't forget to shop around to compare prices. The Farmer's Market is a great place to purchase fresh, good quality local produce. Also be on the lookout for coupons, deals and savings, and use circulars to find the best deals.

Retiree Linda at CareOne has smart ideas for decorating on a budget. Linda advises sticking with items from previous years to save money, but also offers a few things you can do to freshen up your home.

• Bring the outside in. Nature makes for great decor on a budget. Pick clusters of magnolia leaves and pinecones and spray paint them gold, silver or winter white. Set them on the fireplace mantle and add mirrored candle holders and a few low glass votive candle holders for instant holiday panache.
• Make items yourself. Many holiday decorations can be made simply. Fabric can be used to combine all the elements of a room. You can easily make a new runner for the dinner table or add tinsel to your tree.

Rob Taylor, a CareOne financial counselor, helps consumers stay on track with holiday spending. It is important to stick to your budget all year, and not drop off the wagon at the holidays.

• Spend wisely. The retails stores have had a rough year and they will likely lower their prices to entice buyers to purchase more. This a great time for consumers to hunt for the best bargains.
• Set your goals and stick to them. It is not the time to buy expensive presents or feel you need to go over board for everyone on your list. A good tip is to leave the credit cards at home. It is one thing if you pay off your credit card balance each month, but if you carry a balance, shop with cash only.

CareOne personal finance expert, Clarky Davis, The Debt Diva has some final holiday tips for a frugal and festive season.

• Join forces. A great way to reduce gift-giving expenses is to go in on group gifts. Not only will pooling your money wind up costing you less, but it will also enable the recipient to enjoy a higher-quality gift than you could've afforded alone. Along these lines, also consider creative solutions like an ornament swap, grab bag or Secret Santa so everyone in your group can receive a present without breaking anyone's budget.
• Avoid deferred payment plans. Don't be tempted by sales pitches offering no payments until 2010. These are never good deals. And it's no fun to start making payments on that flat screen TV after it's a year old.

For more ways to reduce your holiday spending, visit www.careonecredit.com under the MyCareOne section with blogs, forums and tips to help you save all season long.

About CareOne Services

CareOne Services was formed in 2002 to provide consumers with multiple solutions to complex money problems. CareOne Services Inc. boasts a unique Financial Fitness Center that examines each consumer's individual financial situation and develops a personalized solution to help the consumer get out of debt and strengthen his or her financial footing.

CareOne Services has helped millions of customers successfully overcome financial instability and continued giving them the confidence to manage their money successfully. CareOne takes a holistic approach in assisting customers to manage their debt, looking at an individual's situation and creating a solution that is achievable and works. CareOne does not offer to change or improve an individual's credit score. CareOne goes beyond providing the standard debt payment programs, helping consumers address day-to-day life issues that are the result of being in debt along with free educational tools online.

SOURCE CareOne Services, Inc.

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