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SALT LAKE CITY -- It's early January and we're already talking about holiday shopping for next December. It may seem early, but some financial planners say they've talked with people who have told themselves it's too early to deal with making a holiday budget.
Chuck Newton, with the Utah Chapter of the Financial Planning Association, says, "Guess what. We're going to be having this same conversation in 365 days from now because, if you don't change your habit now and you don't break the cycle now, you're going to be right back to where you started."
Newton says consumer spending and consumer debt have climbed, so he is predicting more people will find out they dug themselves in a hole this year with last year's shopping.
"In the next couple of months, as people get the bills, they're going to be [saying], ‘Oh my goodness, what are we going to do?'" he says.
Plus, he says many credit card companies have decided to raise minimum payments, making it harder to pay the debt off.
Newton says people need a two pronged plan of attack to get out of the debt they got themselves into over the last holiday season and to set aside funds for the next one.
To get out of debt, he suggests that people take a look at how much they can give over the amount they normally would pay toward their credit card balance. At the same time, put money away for shopping, but don't start shopping yet.
"Start whacking at both of those before you actually start your buying. Then, you can start your buying come springtime. Springtime is when you'll start to see different deals on a seasonal basis," he said.
Newton says there are great deals throughout the course of the year when many of us aren't even looking to buy gifts. For instance, he says school supplies and coats cost less in the spring and swim suits are cheaper in the fall.
E-mail: pnelson@ksl.com
