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FOLLOW BEN'S HOLIDAY SHOPPING TIPS AND AVOID MAJOR [FINANCIAL] GRIEF IN THE NEXT MILLENNIUM!
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1) Credit Cards: Before you even LEAVE your house, do yourself a favor first! Get out your wallet and take out all of your credit cards and make a list of the cards that are issued to you. Write down:
The company issuing the credit card
The name as it appears on the cards
The account number and expiration date (if any is listed--most vanity/mono-use cards like Foley's, Sears, Nordstrom's, etc. don't have expiration dates)
Turn the card over and get two 800-numbers: One is for Customer Service and the other for reporting a lost/stolen credit card.
With all of this information collected, KEEP IT IN A SAFE PLACE, NOT IN YOUR PURSE OR WALLET!
Congratulations! You're now one of less than 7% of consumers across the country that have a complete and up-to-date list of this extremely important information. Remember, your liability under Federal law for lost/stolen credit cards is $50 per card. With the average American having 7 cards to their name, let's do the math..... 7 cards X $50 per card = $350 potential liability in the event of loss
2) The Game of Holiday Spending:
a- Record levels of credit card debt in this country mean that there may be more people paying with cash this holiday season--what a concept!
This also means that there could be more mid-holiday shopping season sales to encourage buying in what some are predicting a soft spending season ahead!
b- DO NOT take every single credit to your name with you when you go shopping! You're making yourself one helluva target for thieves that know many consumer feel like they've got their "plastic security blanket" with them by taking all of their cards.
Take only the card/cards you'll need that day for shopping. How do you know what you need to take? MAKE A LIST FIRST! It's like going grocery shopping without a list but with a huge appetite...you're asking for trouble and waste!
Consolidate your purchase location. Then minimize the number of cards you have on your person.
Prioritize your purchases! Go after the "hot" item that will sellout early first (remember Cabbage Patch dolls and Tickle Me Elmo?); buy those items and then (if you can) play the waiting game. Remember, the closer you get to D-Day, the better prices you're going to find! (Like tickets for a ballgame are always cheaper from the guy trying to unload them after the game has started.
3) Thinking about getting a new credit card? Many stores (Foley's comes to mind) want you to carry their credit card. It spawns customer loyalty and throws off great profits (store cards like Foley's, Sears, Dillards, Nordstrom's, etc. all carry 18% interest rates).
In many cases these stores will offer you a chance to pick-up a 10-20% discount if you take out a card (and are approved of course) right on the spot. This presents a great opportunity to do some major shopping and take a nice savings at the checkout line. Combine this strategy with timing your purchases to take advantage of right-before-the-holiday sales and you could save a substantial amount of hard earned cash.
4) Take only the cards you need! In fact, it's better to put all of your purchases on one card--the lowest interest rate credit card you have--and leave the rest at home. This helps you keep track of your spending instead of spreading out a bunch of spending on a bunch of cards that will haunt you in late December/early January.
5) Credit Cards Are Safer! Being an advocate of cash over credit makes this hard for me, but you know, using credit cards wisely is okay...but few of us actually practice this. Credit cards are safer because:
The liability issue in case of theft/robbery is well defined up front (as discussed earlier) It's easier in many cases to enforce warranties and return policies on a credit card purchase than cash/check
6) Buying a watch or jewelry this holiday season? Here's some things to think about:
Get the seller to write that their return policy will extend your time to return/or exchange an item from the 12/25/97, not the actual purchase date. This gives you more time if you need to make an exchange/return.
Consider checking out the local pawn shops! I've done segments over the years on this, and it's always worth repeating. Pawn shops offer tremendous values or pre-owned AND new jewelry and watches. Almost all come with (if not the original) a nice presentation/gift box and warranty information/cards intact. And unlike regular retail establishments, pawn shops will deal! They'll negotiate like a street vendor in Mexico, especially if you're buying other stuff there.
7) Looking for sports, musical or computer equipment? Try the pawn shops for the very same reasons, and if you buy a bunch of stuff, they'll really negotiate on price.
8) Looking for books, tapes, CDs this holiday season? Check out Half-Price Books; chaos is another name for their inventory control system, but consumers can find some great deals on pre-read and NEW books, tapes and CDs. (And it's a great opportunity to clean out your bookshelves and sell them some of your books, tapes or CDs before you go and raise some extra ash for the holidays!)
If you do decide to do your shopping at one of the major bookstore chains like Barnes & Noble, Borders, etc., it's an opportunity to save time and brain-damage on wrapping your gifts! Most of these stores will offer free gift-wrap...one less expense and hassle in one of the most stressful times of the year.
9) Don't let emotion put you into deeper debt! So many folks shop when their emotionally driven to the mall, and that's the kiss of financial death. Make your list and stick to it. Pay cash (check) when ever possible. And don't let guilt from the other 11 months creep into your wallet this next month.
10) In closing.....The average responsible consumer will spend January - August paying off their holiday expenditures The "others" (which is the majority) will roll this debt into their already bulging debt load, and try to make minimum payments for the rest of their lives. (Making minimum payments can take anywhere from 12-31 years to pay off a debt if no additional charges or late fees are added.)
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