Holiday Spending without the stress    

 

11 ways to avoid Holiday over-spending 

     

1. Decide how much money you can afford to spend (if any) and make it part of your December, and January spending plan (budget). Yes, January should be included if you are planning to shop at any Post-holiday events. This is the point where you should seriously consider if you can afford to buy gifts this year. Many people feel an obligation to spend money during the holidays but it simply may be something you cannot and should not do based on your financial circumstances. If you find that you don't have the ability to spend money, we have some alternative suggestions coming up.

2. Pay cash, and avoid using your credit cards.

3. Make a plan to buy only one present per person.

Focus on quality over quantity even with children. That has actually gotten easier to do each year as electronic toys, games, and computers have become more popular with kids. You can justify fewer gifts because each gift, like a computer, can deliver so much more nowadays.

4. Make a shorter list!

First of all, make sure you are using a list. Then consider if you are buying on auto-pilot without giving much thought to who is on the list. When was the last time you reviewed that gift list. There is nothing wrong with paring down your list especially in tougher financial years. If you must keep the list in tact, think of cutting the budgeted amount per person. Yes, you should budget a specific amount to spend for each person on your list!

5. Take advantage of before-holiday sales.

It seems the pre-holiday sales start earlier each year and this year is no exception as retail stores are hurting for sales. Many people think waiting to the very last minute will garner the best savings but that is not always the best strategy. To get sales moving, retailers will start the season with a round of big discounts. Also, waiting to the last minute often leads to increased stress and impulse buying which can lead to over spending.

6.Make presents.

Can you bake or do crafts? Can you write well or take great photographs? Are you musically talented? With today's computer technology, anyone can record and create CD's. How special would it be if someone wrote and recorded a song just for you? Give needlework, ceramics, framed photographs or craft items.

7. Donate your time as a present.

Again, your talents and time are valuable and they might make a better gift than a store bought sweater. Do new parents need a night off from a new baby? Does an elderly relative or friend need rides to the doctor or help cleaning their house? Can you change oil or do other car maintenance? How about giving golf, swimming, or music lessons as a present?

8. Watch postage costs.

Be sure to mail early to avoid priority postage rates and choose lighter gifts such as gift cards to save money on mailing costs.

9. Make homemade cards either by hand or with the computer and avoid expensive wrapping paper. Use bulk postal wrap from the office supply or art supply store. It can be much cheaper and you and the kids can decorate it yourself. As a bonus, it is more environmentally friendly.

10. Don't forget to cash in bonus points you accumulated by using credit cards and Debit Cards. Today you can cash in points at many retailers offering just about any product you could want.

11. Carefully plan and shop at post-holiday Sales and be sure the prices you are paying are truly discounts. Don't use the lower prices as an excuse to over shop. Many people buy first and think of something to do with the item later. If you don't have a need right now either personally or as a gift, avoid making the purchase. By the way it is ok to stock up on cards and wrapping paper for next year if you are getting 60%-80% discounts and can afford the purchase.

 

   

  ** Do you need help creating your family budget? Talk to a CACC Credit Counselor toll-free 1-800-763-1874 or visit www.caccdebt.org.

 

 

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The entire process of seeking approval to modify a mortgage loan is complicated and stressful so it pays to do your homework and to know what to expect.

When the Obama administration rolled out the Home Affordable Modification Program (HAMP) in 2009, officials estimated 3 to 4 million borrowers would seek relief from their mortgages through the program amidst the worst recession and housing market collapse in decades.

 

More than two years later, those projections have proven to be optimistic, to say the least. According to the Treasury Department, about 700,000 homeowners had sought aid from HAMP through the third quarter of 2011.

 

That's a long way from 3 million-plus.

 

"A lot of homeowners who are in dire straits with their mortgages can be intimidated by the confusing process for getting the help they need, but it doesn't have to be that way," said Stephfan Nurse, a loan modification expert and CEO of Consumer Education (www.consumereducationonline.com). "The key is knowing and understanding your options. With education, you are empowered."

 

"Applying for a loan modification is a stressful process that can take several months without a lot of communication back and forth from the lender," Nurse said. "The best way to ease that stress is to know as much as you can about your options and to understand what goes on behind the scenes to avoid simple mistakes."

 

Among Nurse's need-to-know items are:

 

Make sure a loan modification is right for you: Ask yourself if you are emotionally attached to the home, because a lender likely will extend the terms of the mortgage to 40 years to reduce the monthly payment. If you're underwater on the mortgage -- if you owe more than the home is worth -- a modification probably is not the answer because of the years added to the note. If you're not emotionally tied to the home, ask local realtors about options such as short sales.

 

A loan modification is not a refinance: A loan modification reduces your monthly mortgage payment without requiring any credit checks, appraisals, home equity or closing costs. The only qualification is financial hardship, which can include reduction in income, illness, divorce or any number of trying circumstances.

 

HAMP is not your only option. More than 70 percent of modifications now are internal modifications made available by the investor holding the mortgage note. The only way to get an internal modification is to ask for one. Worth noting: HAMP bases its modifications on gross income (your mortgage must exceed 31 percent of what you make in a month) while internal modifications are based on monthly net (after-tax) income.

 

Be complete and thorough in your paperwork: Lenders receive thousands of faxes every day, so make sure your account number is on every page and that all questions and categories are filled out. A document manager who comes across an incomplete form may put it aside and move on to the next one. Just like that, the 30 days you may have to wait to hear from that manager becomes 60 or 90. It's also best to follow up with the lender weekly.

 

"The process can be filled with stress, mistakes and misinformation," Nurse said. "It was a journey to get your house. Be ready for the journey to keep it." 

 

 

 

 

 

email:   education@caccdebt.org 

web:     www.caccdebt.org

 
CACC Money Wise Monthly Editor in Chief:
Mike Schiano, "The DebtBuster"