It's almost time for Thanksgiving, and that also means it's time for Black Friday and the official kickoff of the holiday shopping season. The National Retail Federation expects retail sales in November and December (excluding autos, gas and restaurants) to increase a solid 3.6 percent to $655.8 billion. Online sales are forecast to increase between 7 and 10 percent over last year to as much as $117 billion.
While it's good news for retailers, it could spell disaster for consumers. Keep in mind that the average U.S. household debt has now passed the $90,000 mark. How can consumers stay safe and avoid piling on more debt than they already have?
Here are 10 pieces of advice to remember when you head out to do your holiday shopping this year.
Ignore the hype
Don't fall for marketing campaigns that make you feel as if you're getting a great deal when you're really not (i.e. buy it today - pay for it tomorrow). Retailers love to make it sound like the holiday season offers the greatest deals of the year. Sometimes that's true, but other times it's not really as great as it sounds.
Don't get caught up in the moment
From the lavish store decorations to the Christmas music playing in the background, it's easy to get caught up in the moment. If you find that your shopping cart is overflowing, step back, regroup and make sure you can really afford everything you plan to purchase.
Keep gift giving to a minimum
There's no shame in telling people that this year will be a lean holiday season when it comes to exchanging gifts. For close friends and family, keep it to one or two gifts. You don't need to purchase everything in the store. There are plenty of ways to let people know how much they mean to you or that you are thinking of them at the holidays without spending a lot of money.
Let logic be your guide
There are good deals to be had on Black Friday, but be mentally tough to know when enough is enough. Leave your emotions at home and let reason be your guide.
Budget in advance
Allocate a certain amount of money for each person you plan on buying gifts for and don't overspend by even a dollar. People think that a few dollars over budget is no big deal, but a few dollars here and a few dollars there quickly adds up.
Don't pull out the plastic
Don't even think of using a credit card unless you are 100% sure you can comfortably pay it off at the end of the month. Americans have on average $15,762 of credit card debt per household. By constantly putting new purchases on these credit cards, you're not only responsible for the cost of the item, but also the interest charged if you can't pay it off at the end of the month.
Think of the future
Ask yourself if you would rather have the short-term satisfaction of expensive material possessions, or the long-term results of financial freedom and abundance. Thinking of the future will help you make smart decisions.
Learn from the past
Did you overspend last Black Friday or some other year? Remember how it set you back financially? Remember how bad it felt when you opened up your credit card statement and realized you couldn't pay it all? Really revisit that pain and how miserable you felt before you head to the mall this year.
Limit charitable giving
While that might seem like it goes against the spirit of the season, until you're financially comfortable yourself, you can't give what you don't have. A little leftover change is one thing, but those who try and support every cause known to man but can't afford to are doing more harm than good.
Kids learn by example
The little ones are always watching. Even parents who have failed to reach their financial dreams can still teach their kids important lessons about money during the holiday season. If for no other reasons, think of your kids and the lessons they'll learn from watching you.
When it comes to Black Friday and holiday shopping this year, be smart. Remember, you can still thoroughly enjoy the holiday season without breaking the bank.