Holiday shopping can lead to mountains of debt

  • Published
  • By Maj. Dani Johnson
  • 18th Wing Public Affairs
KADENA AIR BASE, Japan (AFPN) --  For some the idea of holiday shopping brings excitement and joy. For others it's the bane of their existence. However, there is one thing no one looks forward to -- the after-holiday debt.

According to the National Retail Federation, the average shopper will fork over approximately $790 during holiday buying sprees. In 2005, holiday sales were around $435.6 billion and this year it is expected to raise 5 percent to $457.4 billion.

"It's important for everyone to have a holiday shopping list and budget," said Vonda Ware, lead work life consultant at the Airman and Family Readiness Center here. "Another pitfall is to use credit cards with no plan for paying it immediately off."

Overspending is prevalent through the holidays, Ms. Ware said. To avoid the pitfalls she recommends thinking outside of the box and getting creative with gift giving.

"One year my family decided not to buy conventional gifts, instead we made coupons for favors throughout the year like washing my husband's car," she said. "It got the whole family involved and we had a lot of fun."

While it may be too late for this year, prepare for next year by shopping throughout the year. The first thing to do is set up a shopping list and a budget. Decide how much you can afford to spend on each person. Ms. Ware reminds everyone to remember hidden costs such as mailing and wrapping fees.

"Don't be afraid to ask for help," Ms. Ware said. "There are people at the readiness center who can work with you one-on-one to create a budget and a debt reduction plan."

Some financial institutions have holiday savings plans you can invest in throughout the year, Ms. Ware doesn't recommend holiday loans because if you don't already have the money you are just adding another bill to your debt.

Another way many Airmen fall prey to holiday debt is by not paying their government travel card or using their GTC for automatic teller machine withdrawals during the holiday season.

"We see a rise in ATM usage during the holiday season," said Sandra Miles, 18th Comptroller Squadron GTC program manager. "Airmen withdraw $100 to $160, pay a portion of their bill, then pocket the rest.

"Others decide not to pay their GTC balance in full and only pay a portion so they can have more money in their bank account," she added. "It's mandatory to pay your GTC bill in full and it should be done when filing your travel voucher."

Both base level and Headquarters Pacific Air Forces officials monitor GTC card usage. Any unusual activity is highlighted and the commander of the Airman is informed.

"Airmen need to remember it is a privilege to have the GTC and it's for official use only," Ms. Miles said. "Abuse can be a detriment to their credit report and their career to include loss of their security clearance."

Airmen who abuse the GTC program may also face judicial and non-judicial punishment according to Capt. David Deitch, 18th Wing Legal Office chief of military justice.

"It varies depending on how severe the misuse is," said the captain. "It can range from a letter of reprimand to a court martial."

While the holidays are a joyous season and giving gifts is a big part of it, it's important to not create unwanted debt or misuse your GTC card in the hopes that no one will catch you so you can buy more gifts.