New Study Shows More Than Half Of Holiday Shoppers Spend More Than Budgets Allow; 60% Of Americans Will Put Those Purchases On Credit Cards

(ORLANDO, Fla.) November 30, 2006 – Now that the Thanksgiving turkeys have been carved, Black Friday has come and gone, and Christmas songs have begun to hit the airwaves, the 2006 holiday shopping season is officially underway. If you were asked to leave the credit card at home, could you still manage this year’s purchases?

According to a new national survey by InCharge® Education Foundation ("InCharge"), a national nonprofit organization specializing in personal finance education and research, nearly half (46%) of Americans said that they always spend more than they planned, and significantly more Americans with children (more than half) believe they can’t really afford to spend as much as they do over the holidays.

Additionally, nearly half (48%) of Americans said that they usually take up to six months to pay off their credit card purchases.

"Many people have a harder time balancing their feelings of generosity with the realities of their modest incomes, and that is a surefire way to give yourself the post-holiday blues come January," noted Rebecca Stiehl, President of InCharge Education Foundation.

However, with this year’s unusually early Thanksgiving holiday, there are a full five weekends between Thanksgiving and Christmas, leaving plenty of time for this year’s gift-giver to shop smart without loading up the credit cards.

"For many people, it is not too late to plot out where they are in their holiday spending, and adjust accordingly during these remaining few weeks," adds Stiehl. "The key is to keep your budget in perspective, and use your credit card responsibly."

While it might feel good to present everyone in the family with a new computer, resist the urge to keep up with the Joneses.

"We’re in the business of counseling people how to get out of burdensome debt, but we also take seriously our responsibility to help educate people to stay within their means," said Stiehl. "And the truth is, there are plenty of ways to show friends and family that you care on the holidays that won’t leave you drowning in debt come January 1."

Budget-Friendly Gift Ideas for the Holiday Season:

• Keep your own temptations at bay this holiday season. If you can resist the urge to purchase that new sweater or digital camera until after the holidays, you could easily use that money to show someone else how much they mean to you.
• Give the gift that keeps on giving. For as little as $10, you can get a year’s subscription to many great magazines. For the movie lover, how about a one or two month subscription to a DVD rental service, movie passes or gift certificates to a local movie rental store?
• Be the 'designated photographer' at this year’s holiday party, and then present your friends and family with a photo album filled with the day’s photos.
• If you have a video camera, how about sending a Happy Holidays video greeting to friends and relatives they can watch on their computer Christmas morning?
• Awaken your inner baker and make a large batch of holiday cookies, fudge or homemade jam to split between school teachers, babysitters and neighbors.
• Keep your friends and family on track with a calendar for the new year, marked with important birthdays and anniversaries.
• Give the gift of giving. If you truly believe ‘tis the season to give, act on your best impulses to set aside time to do the volunteer work you’ve always wanted to do. Including a note about your experiences in holiday cards might be the best gift you can give to those in your gift giving circle.
• Remember: when the jingle bells stop ringing, the sales begin. A $20 gift card will go much further after the holidays due to post-holiday sales. If you can’t afford that special item on your loved one’s wish list, get them a gift card to put towards their special purchase after the holidays.

InCharge commissions a quarterly, nationally representative telephone survey to track the current economic and financial issues Americans face, and to measure how well consumers feel they are managing both financially and emotionally. The data for this study was collected from randomly dialed sample of 1,000 adults from the general U.S. population (500 men and 500 women), aged 18 and over by the market research firm Ipsos-Insight, during November 2006. Data was weighted to match U.S. Census on key demographics.

For more information, including money-saving tips and budgeting assistance, please visit www.incharge.org.

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Headquartered in Orlando, Florida, InCharge® Institute of America, Inc., is a national nonprofit organization with affiliates specializing in personal finance education, research and credit counseling.  InCharge® Education Foundation, Inc., publishes YOUNG MONEY® magazine and Military Money® magazine and offers basic financial management education to clients and the general public.  InCharge® Debt Solutions provides professional credit counseling and financial education services to consumers and is a member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA).  For additional information, visit www.incharge.org.