‘Tis the season for debt

Every year holiday spending per consumer goes up and much of that spending ends up as credit card debt. Shedding that holiday debt is harder than shedding extra holiday pounds.

At the holiday season it is hard for even debt-wary and credit-savvy consumers to avoid over-spending. It’s not easy to resist buying that special gift for that special person.

The best way to finance your holidays has always been the Christmas savings account. Saving for your holiday spending throughout the year and not relying on credit cards with high interest rates could end up saving you hundreds of dollars over the course of repayment.

The interest on these accounts is minimal, so don’t plan on making money. The discipline in saving ahead of time is a good exercise in financial management and the peace of mind you will have when you pay for your holiday expenses without running up credit card debt is priceless.

Next year, plan on saving for Christmas a little bit at a time. Contact a banking institution about their holiday spending account plans.

This is the time of year when the Grand Debate begins again in earnest (I know it never really goes away – let’s just say it simmers for the rest of the year): whether to buy a real Christmas tree or a fake one. Of course, once you’ve opted for the fake, you are more or less tied into that choice for the next few years, if only to justify the expenditure. But the Debate continues, even so; the real tree fanatics never let go.

Personally, I am a devotee of the fake tree. It’s easy to put up, doesn’t drop pine needles all over the place, it looks just as good as the real thing and is even easier to take down again after the main event has faded into the distance. But I recognize that the most telling objection of the real tree fans is valid: the fake doesn’t have that wonderful pine tree smell.

Some things have to be sacrificed for convenience, however; if you really need that pine tree smell, go outside and smell a tree.

Whatever your preference, Kelli B. Grant of SmartMoney dot com has good advice for buying either type of tree. If you still haven’t decided which type to go for, she could help make up your mind.

Ever have trouble remembering important dates? And how about less obvious things like checking to see if you ever received that mail-in rebate you so carefully completed all the forms for? I do – and have just discovered Memotome, an internet service that emails you with dates you have registered just before they become due.

Perhaps the best thing of all about this reminder service is that it’s free. With its potential for saving you money, it has to be one of the best ideas in a long time. I have tried the digital diaries that sit on your computer, ticking away until the appointed dates – but my problem is that most of the time I don’t have them running in the background. And, if they’re not running, they can’t remind you.

But everyone checks their email at least once a day and this is where Memotome scores. Have a look and see if it could be helpful to you: Memotome.

When buying an expensive item like a computer, especially when it is to be a gift, you want to be sure that you’re getting your money’s worth. As with most markets, the computer sales world is a minefield of traps and deals that look good but do not deliver. Before making your purchase, know what you want (and need) and the options for buying it.

The big companies are not necessarily the way to go with computers. They may have the muscle to force suppliers’ prices down but they also became big by making sure that their profit remains healthy. Often your local computer store can offer you a better deal; plus you have the benefit of the personal touch – usually a small store is owned and run by someone who knows computers inside out and is happy to share that knowledge.

The best advice I can give you, however, is to know exactly how much you are prepared to spend and then do the research on the net to find the best deal for that price. Don’t worry too much about obscure technical descriptions; generally the higher the figures attached to a component, the better it will perform. Make sure that the price quoted includes a monitor. Very often computer prices are made to seem low by separating out the monitor and making it an extra purchase.

I could write pages of details on the various things to look for but that is not really my intent here. It is enough that you are aware that the purchase of a computer is not something to be done in a hurry.

Marketwatch dot com has a good article on the basics of computer buying. It’s well worth a read.