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Department of Consumer Affairs Urges Consumers to "Keep Credit Cards Under Wraps"
Tips for Avoiding Excess Debt this Season

"Paper or plastic?" When doing your holiday shopping, this question is harmless enough after the purchase is complete.

However, the California Department of Consumer Affairs (DCA) reminds you that, when the question is about the method of payment, the implications of paying with plastic can last for months or even years.

A recent survey by the National Retail Federation found that consumers plan to spend an average of $702 during the holidays on gifts and other seasonal items, and they end up spending an additional $90 on themselves as well. As in past years, approximate 60 percent of all purchases end up being paid by credit card. These debts can easily get out of hand, and even today it's not uncommon for families to be paying off credit cards bills from holiday purchases made back in 1998.

"The long-term struggles of holiday credit card debt can be avoided with just a little bit of planning," said Department of Consumer Affairs Director Charlene Zettel. "Before even getting into their cars to go to the mall, families need to sit down at their kitchen table and decide how much they can truly afford."

Before Your Next Shopping Trip

The Department of Consumer Affairs suggests three simple steps you can take to keep your holiday spending under control.

• Sit down and make a written budget of both your gift buying and any other expenses (clothes, food, decorations, etc.) you anticipate during the holiday. Make sure the budget is realistic and affordable.
• List the people you will be shopping for and write the spending limit for each next to their names. Add up those limits to make certain you are still working within your budget. (This is the most common tip given by credit and debt counselors.)
• Before heading out to the stores, decide how you are going to pay for your purchases. Some debt counseling agencies recommend leaving your credit cards and checkbook at home and using only cash.

Protect Your Credit Identity

Even as you strive to control your spending, there are those who would like to entice you to use your credit cards. These can be legitimate businesses and advertisers or illegitimate promoters like credit thieves. You can take these steps to protect yourself.

• If you use credit cards, don't carry any more than one or two at a time. Keep Social Security cards, birth certificates, and passports in a separate, safe place until you need them.
• Do not print your Social Security number on your checks.
• Always take your credit card and ATM receipts with you after a purchase. Be sure to destroy them when you no longer need them.
• When paying bills, take them to a Post Office drop box. Never leave bill payments in your mailbox for the postal carrier to pick up.
• Shred those pre-approved credit card solicitations and credit card convenience checks if you are not going to use them.
• Upon receiving your bills in the mail, carefully review the statements (including cellular telephone bills) for unauthorized or incorrect charges.
• If a telemarketer asks for your credit card number, ask the telemarketer to first send you information about the company and the product. Never allow yourself to be rushed into a purchase.

Laws that Protect You

One of the very best ways to avoid more debt is to stay away from places where you would spend your money. However, with the ever-increasing number of telemarketers, Internet spamming, and direct mail campaigns, the opportunities to spend come right into your home. So it's important for you to know about existing laws and programs that protect you from these intrusions.

• You may want to add your name to the Federal Trade Commissions "Do Not Call " Registry, which blocks most telemarketers from calling you. You can register online at www.donotcall.gov or call toll free, 1-888-382-1222.
  
• If you get calls from telemarketers not covered by the national "Do Not Call " list, you can tell telemarketers to place you on their own "do not call" list. They are required to honor that request. This protection is part of the Telephone Consumer Protection Act of 1991 and the Federal Trade Commission's Telemarketing Sales Rule,
• You also have the option of signing up for the Direct Marketing Association's Telephone Preference Service at P.O. Box 9014, Farmingdale, NY 11735-9014. DMA member companies that participate in this industry-sponsored program will put you on their"do not call" list.
• Don't respond to unsolicited or "spam" e-mails, as this will often generate more spam. Instead, delete unsolicited messages.

Get Your Credit Debt Under Control

There is help available to get your credit card debt under control. Check the phone book under "Credit and Debt Counseling Services" to find an agency that can assist you with a plan to pay off your debts.

Before choosing a credit counselor, be sure to check it out with the Better Business Bureau in the area where the counselor is located. It's also a good idea to talk to other customers of the counselor.

"Keep Credit Cards Under Wraps" is just one wish on the Department's " Consumers' Holiday Wish List." For more holiday consumer tips, check the Department of Consumer Affairs Web site at www.dca.ca.gov or call (800) 952-5210.

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