Better Plan Now to Avoid Holiday Hangover

The average consumer plans to spend $740 on their holiday purchases, according to a survey by the National Retail Federation. But consumers will likely exceed their budget by $370 this year, according to a study by HSBC North America.

Financial advisers and a shopping guru share advice for how to survive the holiday season without breaking the bank.

- Keep a list of what your family and friends like or want and look for those items to go on sale.

- Shopping online can be an easy way to hunt down deals. It also can save time. Karen Hoxmeier, a professional bargain hunter and the creator of a Web site on great deals from big-name merchandisers. Hoxmeier posts merchandise at mybargainbuddy.com, that is at least 60 percent off and/or has free shipping.

When you register online with a retailer, check off the box that allows e-mail notification for discounts and promotions, which can knock off an extra 20 percent. Hoxmeier posts the coupon codes for more than 500 retailers on her site.

There are two caveats. Order soon. "Give yourself at least two weeks because shipping times can vary," Hoxmeier said. And watch out for scams. If the deal sounds too good to be true, it just might be.

- Make a spending plan. Examine your cash flow. Figure out the amount you can afford to spend and scale back by 10 percent to leave wiggle room. Write down how much you plan to spend on each person and any ideas for what they might like.

- Stick to your plan by minimizing temptation. Don't open new credit accounts for one-time discounts, said Doug Charney, a financial adviser and president of Charney Investment Group of Wachovia Securities in Harrisburg, Pa.

- Don't treat yourself while shopping for others. "You have to be really disciplined not to buy for yourself," Charney said.

- Make a payback plan. You should be able to pay off your holiday spending by March, said Carlo Airdo, director of credit education for HSBC in Prospect Heights.

Source: Daily Herald