This year’s tight economy could make the holiday season more difficult for many shoppers. Typically at Christmas time you see credit cards come flying out of wallets at every possible opportunity. People, don’t worry about tomorrow, they just spend, spend, spend, in order to have a fabulous Christmas for friends and family
This year, however, we may see things a little differently. Many consumers are deciding to shop only with cash this year. To make it even more difficult banks are limiting credit card offers, approving fewer applications and reducing credit lines for current customers.
Typically, retailers make a fortune at Christmastime. However, with jobs declining all across the country the stock market bouncing around, but typically falling and global fears about this economic crisis, many people are friend afraid to use their credit cards this year.
There may be an answer to your holiday shopping needs this year, without resorting to your credit cards. Layaway, the process of setting aside your purchases with a small down payment and then making regular payments over a period of several weeks before you take your purchases home is making a comeback. Many big retailers such as Sears, Kmart, T.J. Maxx and Burlington Coat Factory still offer layaway and, in fact, Kmart company spokeswoman, Caroline Goldberg, says Kmart’s layaway request has increased this year.
If you do use your credit cards this holiday season, be careful, especially with store brand credit cards. They can carry a pretty hefty interest-rate and there may not be many new credit card accounts issued. This year, many store owners are counting on current cardholders to make it a Merry Christmas for them
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