A Holiday Story

The Chestnut CourierFall 2014

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By: Kristine Gamm-Smith, M.A./Certified Credit Counselor

Theresa was getting upset realizing that this is October, and the Holiday Season is just around the corner. She wasn’t ready for that. As a single working Mom, with no additional support to help her, her bills were barely getting paid; more like “robbing Peter to pay Paul,” and she hadn’t saved a dime for the Holiday Season. She felt discouraged that her two teenage boys want-ed expensive electronics for the Holidays, and this year there was just no way she could do it.

This past year had been tough on everyone. Theresa had lost some hours at work, and found herself maxing out credit cards just to keep up with food and gas for the month. Now she is in a Debt Management Plan with a credit counseling agency, and she is slowly but surely repaying the debt she accrued over time. She has tasted some freedom in that she no longer uses credit cards but rather, pays cash for whatever she buys. This year however, there was no extra cash. She suddenly felt guilty that she hadn’t done a better job of putting aside money when she could. Even saving a few dollars each month would have given her something to work with. But that’s water under the bridge. Theresa thought to herself, “We are just going to have to be creative with what we have.”

That night she called the boy’s together to give them the bad news. Funny, but they really didn’t seem that upset. They both just shrugged their shoulders and said “don’t worry about it Mom,” and that was it. A huge load was lifted off Theresa’s back. She realized that her kids knew that their Mom was struggling with money. She didn’t want to talk about it with them and stress them out, so she never brought it up. Now she could see that she had underestimated them and was relieved that it was finally out in the open. That was a Holiday gift for her in and of itself.

That Holiday Season was by far the best one she and the boys had ever experienced. They planned a special day of eating their favorite holiday meals, and playing games together and enjoying one another’s company. The boys surprised their Mom with an offer from each of them to be her “butler” for a day, and wait on her hand and foot. Theresa in turn, offered a special day out with each of the boys, doing something, or go-ing somewhere that they would enjoy (and within their finan-cial constraints). It was the most pleasant of days, and no debt was created over it. Wow, for the first time, Theresa looked for-ward to the New Year. Finally, Theresa was determined to never be set back again financially with unexpected costs. She began a savings that day that she has faithfully built upon ever since.

The situation above illustrates so clearly that we do not have to spend money to enjoy a holiday as it is intended to be. It is a time of being together with family and friends. It is a time to look back at the past only to welcome in the New Year. You de-serve to be free of debt this holiday season. Follow Theresa’s ex-ample and be creative at a low to zero financial cost. Building relationships is cost-effective…buying beyond your means is self-destructive. Which way will you go this holiday season?

The NFCC encourages consumers to be aware of their current financial situation before beginning holiday spending, and pro-vides the 2014 Holiday Financial Reality Check-up to evaluate their readiness to take on new debt.

Consumers may still be receiving the summer vacation and back-to-school bills, but should not lose sight of the fact that the holiday spending season is just around the corner. This makes it vitally important for a person to understand their current fi-nancial situation before taking on new debt obligations. Doing otherwise could result in damaging an already fragile financial situation.

The NFCC recommends that consumers take the Holiday Finan-cial Reality Check-up quiz to determine if they are in a position to begin holiday spending. Complete the following sentence with a true or false answer: “Concerning my current financial situation, I…..”

1. Know how much I currently owe on each credit card.

2. Am receiving collection calls and notices.

3. Have money saved to pay cash for holiday expenses.

4. Will be adding new debt on top of old debt if holiday ex-penses are charged.

5. Have reviewed my credit report and score in the past 12 months.

6. Am near the maximum amount allowed on my lines of credit.

7. Am current on my vehicle payment.

8. Have applied for a payday loan, title loan, or credit card cash advance in the past 12 months.

9. Have savings in addition to that earmarked for holiday spending.

10. Have overdrawn my checking account more than twice in the past 12 months.

A person is in good financial shape to begin their holiday spend-ing if they answered true to all odd-numbered statements. Con-sumers answering true to even numbered statements should use this quiz as a wake-up call to take action about their financial situation before it spirals out of control, and certainly before tak-ing on additional holiday debt.

Reaching out to an NFCC member agency for help is one of the smartest things a person can do. Allowing a trained and certified financial professional to review the financial situation now can put a person into a much better position to enter the holiday spending season.

Knowing the difference can make all the difference.

For professional help getting started, reach out to a trained and certified credit counselor at Chestnut Credit Counseling Services. There you’ll find counselors who work with people like you everyday, pointing them toward financial stability. For more information or to reach a credit counselor please call 800.615.3022.

Complete a Financial Check-up Before Beginning Holiday spendingBy Gail CunninghamMedia Relations Manager for the National Foundation for Credit Counseling