Debt Shield Warns that Holiday Overspending Creates Increased Credit Card Debt

Debt Shield Inc., a Maryland-based debt settlement company, is cautioning consumers against overspending during the holiday shopping season in hopes that consumers will not pile on additional credit card debt.

American consumers currently carry $846 billion in credit card debt and are expected to increase that number this holiday shopping season. According to the National Retail Federation (NRF), holiday sales are expected to increase 5 percent over last year’s total sales of $435.6 billion to reach a record $457.4 billion by the end of 2006. Holiday spending, which the NRF defines as retail sales in November and December, rose 6.1 percent in 2005.

The average holiday shopper is expected to spend nearly $800 this year, which is up from $738.11 in 2005. Much of this spending will go on credit cards.

Debt Shield President Steve Carrier said it is very easy to overspend on loved ones this time of year, a fact which retailers and creditors are banking on. Visa sales alone totaled $257 billion for the 2005 holiday season, a 17.5 percent jump from the previous year.

“It’s only natural to spend more during the holidays, but that does not mean we should forget about finding ways to save money on gifts and other holiday items,” said Carrier. “We should also not spend away our future by using credit cards to charge purchases we cannot afford.”

Carrier recommends consumers start their holiday shopping early to spread out the cost and make it easier to pay for gifts with cash. Last minute shopping is often purchased on credit and is often billed during the same billing cycle.

Budgeting is an important way to avoid excessive holiday spending. Carrier suggests setting a predetermined amount for all holiday spending and plan specific gifts accordingly. He also advises consumers to include holiday meals, decorations, entertainment as well as gift wrapping supplies in this budget because the actual gifts are only part of the overall holiday expenses.

“With a little bit of planning, you can still enjoy the spirit of December giving without experiencing the headaches of January credit card bills,” Carrier explained.

About Debt Shield, Inc.

Debt Shield is a debt settlement company dedicated to helping consumers resolve their unsecured debt through mutually agreeable and discounted lump sum settlements in consideration of legitimate financial hardships. By helping consumers avoid bankruptcy, Debt Shield provides a service for both debtors and creditors. For more information about Debt Shield, call 1-888-397-7546 or visit the website at www.debtshield.com.