Holiday Spending Habits

The holiday season is just around the corner and you may be thinking about all the holiday costs. We agree that Christmas should be a wonderful time of year and can be if you keep spending under control.

Many people sacrifice quite a bit to supply Christmas gifts for loved ones. A recent article on British news site “24/7” stated that the average Britain spends $351 dollars per family for holiday gifts. In contrast, American families spend an average $859 per holiday according to the American Research Group.

Are Americans too caught up in “keeping up with the Joneses”? It is a good question, especially when considering the credit card debt that builds after each Christmas season.

While many may make a point of saving for a car or for their child's education, few people plan ahead for their annual holiday spending. If you are paying down debt, it may be time to cut back on the Christmas spending. You don’t have to skip the holiday, just be more like the British and spend less. Or you could decide to make a gift or give a gift of your time to a family member rather than spending cash.

But we understand that holiday cash requirements can arise and times get a little tougher around the holidays. Therefore, Achieve Security has programs designed to help get you through the seasonal crunch.

Too often, we see clients drop out of their debt program entirely without discussing their options. We would be happy to discuss reducing your payments during November and December. But remember, any decrease in payments will increase the time necessary to free you from debt. Still, it is better to stay with your program through the holidays so that next year can truly be a happier New Year!

Please call our client services department at any time for more details.

Consumers Say Recession is Here, Focus Shifts to Debt

According to credit and collection news “A recession has occurred whenever the Sentiment Index has declined as much as it has fallen during the past year, including the recessions occurring from the mid-1950s to the early 2000s,” remarked Richard Curtin, director of the survey, which found that consumers were nearly unanimous in the opinion that the economy had already slipped into recession.

Consumers have adopted much more cautious spending plans, and are shifting more toward repaying debts and rebuilding their savings. The expectations index fell over 31% in March of 2008. This same index fell by 24% prior to the 1990 recession.

The majority if consumers receiving the tax stimulus package show indications that they plan to pay off debt and rebuild savings.

“Consumers are now more in favor of repaying credit cards and rebuilding their reserve funds so they have the needed financial flexibility to handle any future twists and turns in the economy,” Curtin said Friday.

As we pointed out last month Achieve Financial Security encourages this plan and suggests that in the long run you are much better off putting your money towards paying off your debt NOW rather than spending it on something else that could wait.

Especially with declining home values hitting a 20 year high. Over 35% of homeowners surveyed reported declines in home value as compared to 18% one year ago and only an only 3% 2 years ago.