THE BEST DEALS AND WAYS TO PAY FOR THEM WITHOUT GOING BROKE
Retailers are preparing themselves for cautious spending this holiday season, and are stocking their stores with lower inventory this year. Here’s what you need to know about Black Friday and the remainder of the holiday season.
HOTTEST TRENDS THIS YEAR
- Time-saving necessities like small ticket, $20 gadgets and accessories (Target kitchen accessories under $10)
- Packaged, large quantity toys great value (Wal-Mart has 100 toys for $100, like Barbies and action toys)
- Video games, Wii, Nintendo $20 off at K-Mart—this will hurt the big electronic store sales at places like Best Buy, who are not offering these discounts on such popular items; big box discount stores competing with electronic stores because people are still spending on the electronic games for their children
- Luring repeat shoppers, stores are offering gift cards (Toys R Us offering $10 gift cards if you spend $75 or more, Target $10 off $100 on future purchases, JC Penney)
- Clothing deals will be on necessities, rather than on luxuries–Old Navy discounting winter coats (as inexpensive as $15), jeans ($10 for kids), fleece sweatshirts ($5)
LAYAWAY
- This popular “habit” has returned
- Time cut-off of 30-60 days, on average (Sears only through December 23rd)
- Upfront charges: Average down payment of 20% plus a $5-10 service charge
- Some stores (Toys R Us) only offer layaway on big ticket items
- For chain stores, only in some locations—check first
- Beauty of layaway: cost is much less expensive than exorbitant interest on credit cards
- Cancellation penalties: Typically $5-10, so be sure upfront
- If an item is “popular” and in demand, no layaway
- No layaway on sale items
GIFT CARDS
- Reuse the $6 billion not used from last year—expect $60 billion this year
- Federal Reserve laws are changing in August involving service charges and rules: new minimum expiration dates are 1 year, and no monthly $2-4 dormancy fees for cards not being used—Amex is beginning this now, Visa and Mastercard to follow—but still upfront service charges of $5-10
- Cash-strapped people will look for 70% off sales rather than buy gift cards
- Late gift givers can get gift card face values on sale after the holidays at swapagift.com or certificateswap.com. Even now, 15-25% off retail price. Service charge upfront of $5 and up, more expensive with more expensive purchases
- Be wary of relying on credit card “points” as a reason to use credit cards, especially if you are carrying a high balance. Nothing is worth lowering your credit rating, even if to save a few dollars.
- Pitch-in Gift Cards: Popular trend, if you can’t spend as much as last year, where each family member contributes an amount towards a gift (can be an anonymous amount). Also popular at companies
CREDIT CARDS
- Only 50% of all people plan to pay with credit cards this season
- 70% plan to pay with cash or debit cards
- For those with high balances last year, credit limits have been dropped and late fees have gone up.
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