Sunday, November 29, 2009

Consumer Finance Tips for Holiday Shoppers

Written By: Lisa Matthys

We all know Christmas is coming when retailers start putting up festive decorations and advertisements drawing consumers into their special deals only available on Black Friday. Even most employers give Black Friday off to employees as it is the day after Thanksgiving, initiating the beginning of the Christmas shopping season. As the economy continues to struggle, the unemployment rate rests at an all-time high, giving consumers very little savings to spend on gifts this holiday season.

With the economy in a recession, consumers need to find other ways to give their family the gifts they want. Many turn to credit cards to help finance the lack of immediate capital. However, experts say to try to limit your credit card use to online purchases and big ticket items. If you do use your credit card this holiday season, make sure to pay on time to avoid any extra penalty fees.

Many shoppers, approximately 43%, plan to use debit cards instead of credit cards. However, there are drawbacks to using debit cards over credit cards. When purchasing online and your security is compromised, your entire bank account can be withdrawn without protection. Likewise, if you spend more than you have in your account, heavy overdraft fees will apply. So shop wisely this holiday season!

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