The upcoming holiday season may be very different for you this year if you are trying to avoid using credit. With the costs of gas, fuel, and groceries on the rise and increases in housing costs, many folks are reassessing their holiday gift giving strategies.

Even if you’ve already created a holiday spending plan and budget, memories of holidays past and the emotional romanticism we tend to attach to the season can quickly derail the best of intentions. All the more reason to plan and use a budget so that the holidays don’t wear you out and turn into a willy-nilly spending spree requiring the next twelve months or more, to get you back on sound financial footing.

Know your limits - both financial and emotional. The number one reason most financial experts recommend creating a holiday plan and budget is precisely because of the emotional triggers that abound during the season. (Including the fact that money, in and of itself, is usually an emotional issue). By taking the time to prepare and plan you will be less likely to be sideswiped by hidden emotional influences or destructive impulse purchasing.

Don’t negotiate on your decisions. Once you have determined what is suitable and affordable for you, don’t allow others to sway or ‘guilt’ you into more. You’ll end up spending far beyond your means and feeling resentful - a sure fire way to dampen the holiday spirit.

Avoid the trap of reciprocation and the pressure of expectations. If you find yourself in the middle of a gift exchange that is focused on how much was spent or who got the better gift, don’t just rethink the gift and gift-giving, rethink the relationship. It’s time to recognize that the holiday season is about relationships not loot.

You might encourage your family to reconsider gifts for everyone and/or spending limits. Sometimes everyone else is just waiting for one person to make the suggestion. Why not explore the possibility? (You will want to have this family conversation before early bird shoppers get rolling.)

Be honest at the office. Sometimes the office can become a financial vacuum, sucking up more money from your holiday budget than you may realize. Between gift exchanges, pot lucks, school fund raisers and so on, you may need to establish a fair and equitable plan here as well. Positive intentions and good will to co-workers can be difficult to translate into cash amounts.

Start early. Really savvy holiday shoppers have an eye out all year long for gift ideas and price comparisons. If you didn’t do that this year, consider starting now for next year. Pick up decorations and wrapping paper at after holiday sale prices to get a head start on next season or find basic or generic paper and decorations for the holidays coming in the next few months.

Buy on line or by catalog - the perfect way to save money and time as well as avoid headaches from the shopping frenzy at the mall. Crowded stores and packed parking lots go a long way toward encouraging us to ‘get in, get out, get it done’ regardless of cost or how well thought out a budget we’ve devised.

Don’t feel guilty if for your ‘Homemade’ translates to ‘Aggravation’. Generally speaking, if you have never completed an arts and crafts project or baked cookies, breads or cakes before, you may be wise to avoid the ‘homemade gift’ solution. Crafts and baking can be time consuming for the novice this time of year, costing twice as much when reality and frustration sinks in and disaster is averted by the mall purchased gift.

Finally, of course you knew we’d mention it: do every thing you can to avoid credit, particularly payday lenders. Nothing contributes to the post-holiday blues like a mountain of bills on January 2nd. After all, in the blink of an eye the tax man will be calling.

Important Information for Debt Management Clients:

The Consumer Credit Group of CitiGroup has recently made changes to their Credit Counseling Guideline terms that are effective immediately. These changes will affect all aspects of accounts owned or managed by CitiGroup that are in Debt Management Programs (DMP). For example, “ANY TIME a payment is not made by the due date, the program may be terminated and the terms the card carried immediately prior to proposal acceptance will be re-instated.” Citibank reserves the right to immediately collect the total balance due when an account is dropped from a DMP and they may not accept installment payments.”

It is rare that Credit Advisors DMP clients do not have at least one account owned or managed by CitiGroup.

CITI related creditors:

• Visa and MasterCard bearing the names Citibank, Citibusiness, Associates, Associate Capital, Cobrand, Choice, Mellon, Travelers, AT&T Universal, Citibank American Express, Sears MasterCard, Preferred, Premier, Cascade, Drive Card, Option Visa, Reflect Visa, and Select Visa.
• Lines of credit including Ready Reserve, Travelers Line of Credit, and CitiHealth Card.
• Macy’s All Divisions related accounts that are now handled by Citibank including Bloomingdales, A & S, Rich’s, Bon Marche, Burdines, FACS Group Retained Accounts, and Lazarus.
• Store cards including Sears and Home Depot.
• Revolving retail accounts through Citifinancial and Associates Financial.
• All former Hurley State Bank accounts including Bailey Banks and Biddle, Blain’s, Fred Meyer, Gateway, Goldsmiths, Merksamer Jewelers, Zales, Affordable Dynamics, America’s Coop, America’s Gold and Diamond Merchant, American Airlines, Associated Brands, Audrey Jones, B.Moss, Best Reception, Betaseron Card, Big Sur, Canadians, DSI Distributors, Electrolux, Entertainment Plus, Fox Jewelers, Future Shop, Gander Mountain, Goodyear Tire, HIFIcom, Helzberg Diamonds, Home Place, Incredible Universe, JCK/Brendans/Bullocks and Losee, Jay Jacobs, Jewelry Three, Kelly Tire, Krigels Jewelers, Laura Ashley, McDuff, National Tire, Office Depot, Paul Harris, Radio Shack, Riddles Jewelers, Romano’s, Staples, Tandy, The Bombay Co, Ultra Jewelers, Premier Jewelers, United Travel Card, Value America, West Marine, and Winston Tire.
• All Private Label Oil (PLO) cards including Conoco, Exxon, Mobil, Phillips 66, Sunaco, Texaco, Shell, and Union 76.

This is by no means an exhaustive list as CitiGroup is adding managed accounts all the time through contract and purchase. Please check with us if you are not sure if your account is CitiGroup related.

In order for us to better serve you as you become debt free through DMP; please send us copies of most recent statements for any CitiGroup account on your DMP. These should be mailed to Credit Advisors Foundation, Attn: Naomi - CitiGroup Account Statement, 1818 South 72nd Street, Omaha, NE 68124 or fax your statement to 402-393-7660 Attn: Naomi – CitiGroup Account Statement.

The Word Search Challenge - the words listed below, pulled from the articles in this edition of Defeat Debt, are hidden in our puzzle. Test your skill and find all seventeen words. Good Luck!

Account Bake Balance Cake Change Clients Collect Family Holiday Important Limit Payment Reality Sale Shop Statement Year