Planning Ahead for Holiday Expenses

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The holiday season is approaching, and you know that often means increased spending. There never seems to be enough money for the things you want to buy, and every year you try to figure out how to pay for your purchases. The key to overcoming these holiday blues is to plan ahead and prepare for the expenses that come with the holiday season.

Jon Dunn, president of the American Collectors Association (ACA) and owner of Diversified Account Systems of Georgia, said that people should think about their spending habits before the holidays. "By planning ahead and preparing for holiday expenses, you can avoid serious payment problems in the future," he said.

ACA offers some ideas to start planning ahead.

Anticipate your expenses. Think about where you will spend your money. Gifts, parties, entertainment and holiday dinners are all expenses that you could have in the upcoming season.

Create a budget. Decide how much money is available and what you can afford to spend this year. Make a list of presents, engagements, and other expenses you may have, so you know exactly what to expect. Remember that wrapping paper, cards and decorations are often big expenses you will need to include. Also, reserve some money for unexpected costs that may arise.

Start a savings plan. Put some money away every month leading-up to the holidays. Often it is beneficial to start a separate savings account just for holiday expenses. Also, your employer may offer special holiday accounts in which some of your paycheck is withheld until the end of the year.

Start your shopping early. Buy presents a little at a time in preparation for the holidays. If an item on sale would make a good gift, buy it. Prices often increase around the holiday season, and it is less expensive to purchase items before holiday rush. Also, merchandise is often clearanced soon after the holidays, when stores want to make room for new products.

Use credit wisely. If you purchase gifts on credit, make regular payments to keep your account current and avoid delinquency. You should begin paying on the account as soon as possible after the holiday season.

By planning ahead, you can increase the value of your dollar and avoid payment problems that often occur after the holidays. This will give you peace of mind and allow you to more thoroughly enjoy your holiday season without worrying about the consequences of overspending.

ACA is an international trade organization of businesses involved in debt collection, with approximately 3,600 member agencies providing professional accounts receivable management services to over one million credit grantors. Headquartered in Minneapolis, ACA serves members in the United States, Canada and 55 other countries worldwide.

Web Site CONTACT: http://www.collector.com

MINNEAPOLIS, Oct. 8,1998