Savvy Holiday Shoppers Start Early, Make A List, Check It More Than Twice and Get Creative.

ByDesign Offers Six Tips to Beat Holiday Overspending

LOS ANGELES -- To reign in holiday spending, and prevent paying for the 2006 festivities far into 2007, ByDesign Financial Solutions (dba Consumer Credit Counseling Service of Los Angeles, Sacramento, Mid-Counties and Central Valley)

"The time to map a strategy and begin shopping for the holidays is now," says Richard Pittman, certified credit counselor and spokesperson for ByDesign. "Without a game plan, shoppers are asking for last-minute stress and a shock in January when the credit card bills roll in. Although the average person is expected to spend nearly $800 on holiday spending,1" added Pittman, "that number can easily soar. Budgeting for the holidays may sound nerdy, but those who find the best deals and the most appropriate gifts have the most fun shopping and face the best new year free of unnecessary debt!" Pittman explained.

ByDesign's Six Tips for Holiday Shopping Like A Nerd

-- Determine how much you can spend over the holidays.
   Over the years, many financial experts suggest consumers set aside
   2% of their net annual income for the holidays. However, if you
   already carry any debt, ByDesign suggests setting your limit to
   less than the net income earned in three working days. The goal is
   to choose an amount that you can realistically pay off by the end
   of December or January, at the latest. Keep in mind the average
   consumer who buys on credit takes four years to payoff the debt --
   with interest!

-- Create a written holiday budget.
   Using the total budget, work backwards listing how much you can
   spend on the categories of gifts, travel and entertainment. Gifts
   encompass an itemized list of those you plan to buy for; travel
   includes airfare, rental cars, tips, hotel, gas, etc.; and
   entertainment is the rest, such as food, cards, postage, wrapping
   paper, decorations, seasonal clothing, etc. Visit
   www.bydesignsolutions.org/budgets to download free budgeting forms.
   The totals allotted to each person and item must not exceed your
   budgeted total amount, so work out the numbers until they balance.

-- Get Creative.
   To meet a limited budget and have the most meaningful holiday
   possible, tap your creativity. Most of us do this best when we have
   plenty of time. Remember what makes the holidays special and make
   sure to think about the needs and likes of your gift recipient when
   choosing gifts.

   For instance, if a coworker has commented favorably on a plant you
   brought into the office, take a clipping of it in November, sprout
   it in water and plant it in an attractive, inexpensive planter and
   tie a bright ribbon around it.

   "Ask most people about their fondest holiday memories and they
   won't be about what they received," observes Pittman. "They will
   recall baking cookies with their mom, decorating the tree, playing
   games with relatives, and such." So, incorporate plans for frugal
   fun with kids. Bring them to parades and bring your own treats.
   Have kids paint and color rolls of plain white paper to use as gift
   wrapping. Watch your local newspaper for free or low-cost holiday
   plays and choir presentations.

   ByDesign recommends downloading a unique, free (for registering) 20
   page Simplify the Holidays guide from the non-profit Center for A
   New American Dream (www.newdream.org/publications), for a
   wealth of low-cost creative ideas.

-- Shop with purpose.
   Don't expect holiday shopping to be fun. Control your spending.
   You're on a mission! Seek meaningful gifts within your budget, and
   that takes work. Despite the temptation, avoid spending on
   yourself. The average shopper makes the mistake of dropping an
   additional $100, just on themselves!3

-- Pay with cash or only one credit card.
   Cash is king. However, if you must use a credit card, take only the
   card with the lowest interest rate with you when shopping. Avoid
   special credit card offers from department stores or your card
   issuer -- such as skipping a month of payments or not paying on an
   item for six months. "Credit card marketers work overtime in
   November and December to give you tempting offers which will
   most-likely cause you more financial pain later," warns Pittman.

-- Track your spending.
   Keep your budget with you and make sure you are staying within
   budget, as you shop (not after you return home in the evening and
   add up the day's purchases). This way you can avoid overspending or
   going over your credit limit and ultimately, enjoy the holidays to
   their utmost potential.

"If you follow the above steps," says Pittman, "you'll be a nerd, but a financially well-off nerd."

ByDesign Financial Solutions, a non-profit organization, is dedicated to helping individuals and families learn how to prevent and solve financial difficulties. As a member of the National Foundation for Credit Counseling (NFCC), and established more than 40 years ago, the organization offers personal finance education, confidential individual debt and housing counseling, bankruptcy education and counseling and the implementation of debt reduction plans in offices located in Los Angeles, Fresno, Sacramento and Stockton.

For low-cost, confidential debt counseling, in person or by phone, please call (800) 750-2227 or visit the organization on the web at www.bydesignsolutions.org.

1 According to the National Retail Federation's (www.nrf.com) 2006 Holiday Consumer Intentions and Actions Survey, the average consumer plans to spend $791.10 this holiday season, up from 2005.

2 From Simplify the Holidays, a free guide published by the Center For A New American Dream (www.newdream.org/publications).

3 see #1.