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December 7, 2009, 10:19 am
Holiday spending quiz helps consumers evaluate their financial situation.
One in every 10 Americans is currently unemployed. Foreclosure filings were reported on close to one million properties in the third quarter of 2009. Personal savings, if it exists at all, is a fraction of what it should be. Terms on credit cards are rapidly changing, putting some consumers over the financial edge. And the biggest shopping season of the year is now upon us.
"Considering the volatility of the economy, consumers would be well-served to take a hard look at their personal financial situation and evaluate how to best approach the holiday season," said Melinda Opperman Springboard's senior vice president of community outreach and industry relations. "Self-inflicted financial pain that could have negative consequences for years to come is a gift to no one."
Springboard Nonprofit Consumer Credit Management suggests that consumers take the following Holiday Spending Quiz to assess their current financial stability before they begin shopping: (answer true or false)
There are arguments in my home about money.
I sometimes hide my purchases.
I have thought about filing for bankruptcy.
I struggle to make my mortgage payment.
I sometimes pay my bills late.
I have used more than 30 percent of my available credit lines.
My debt interferes with my sleep, job or home life.
I have little or no savings.
I am receiving collection calls or notices.
If I lost my job, it would mean an immediate financial crisis in my life.
I sometimes hide my purchases.
I have thought about filing for bankruptcy.
I struggle to make my mortgage payment.
I sometimes pay my bills late.
I have used more than 30 percent of my available credit lines.
My debt interferes with my sleep, job or home life.
I have little or no savings.
I am receiving collection calls or notices.
If I lost my job, it would mean an immediate financial crisis in my life.
The harsh reality is that consumers who answer "True" to two or more of the above are not candidates for a holiday shopping spree. Ignoring the reality of your financial situation will almost certainly lead to further financial distress down the road. It will come in the form of an unmanageable debt load, resulting in a damaged credit report and lower credit score, likely limiting your access to future credit. If there were ever a year to approach holiday spending with your head instead of your heart, this is it.
"Springboard Nonprofit Consumer Credit Management supports financial responsibility, regardless of the season," Opperman continued. "With the ghosts of Christmas past still lingering on many credit cards, piling new debt on top of old cannot be considered responsible by any measure. With any sacrifice comes reward, and the benefits of not having a mailbox full of bills in January will likely outweigh any lifestyle spending adjustments consumers make during the holidays."
If you're wondering how to deal with holiday spending on a limited budget, reach out for help to Springboard Nonprofit Consumer Credit Management. Throughout the nation, Springboard offers assistance with money and credit management through educational programs and confidential credit counseling in both English and Spanish. Springboard offers various financial literacy workshops, including Surviving the Holidays, where consumers learn how to prepare costs associated with the holidays, manage holiday spending and begin the New Year without holiday debt. In addition to free educational seminars, Springboard also offers interactive financial tools on their website, www.credit.org, to assist consumers in managing their money. To find the office closest to you, call 1.800.947.3752, or go online to www.credit.org .
For more information, contact: Sheri Stuart, Senior Communications Specialist
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