Harnessing Your Online Holiday Shopping

HARTFORD — The Convenience of “point-and-click” shopping is causing many consumers to avoid the crowds and long lines of department stores this holiday shopping season and opt to purchase gifts from the quiet of their own living rooms, through online shopping.

According to a recent study conducted by e-market research firm Cognitive Inc., online purchasing is quickly becoming a mainstream consumer habit. The study notes a rapid adoption of the Web among mass market consumers, citing that gifts make up 58 percent of the products and services bought online. An online survey conducted by World Research in cooperation with Earthlink noted similar findings, stating that Internet users more than doubled their spending during the 1998 holiday season.

With the growth of online purchasing likely to continue in 1999, the Consumer Credit counseling Service of Southern New England (CCCS) urges consumers to exercise caution when shopping via the Internet.

“Many people who do holiday shopping on the Web use credit cards for their purchases,”_ said Bev Tuttle, CCCS president. “Charges made online can add up quickly. You can visit stores online much faster than you could in the traditional retail environment. If online purchases are not a part of your overall  holiday spending plan, you may end up with unmanageable bills in the New Year.”

Many of the tried and true holiday budgeting strategies still apply, but CCCS offers these suggestions to cope with the added online shopping twist:

Start With A Holiday Spending Plan; no matter how you plan to do your shopping, first decide how much you can afford to spend and develop a budget. Don’t forget to include expenses such as decorations, wrapping paper, postage and travel.

It May Feel Like Magic, But Credit Card Bills Won’t Disappear; “Point-and-click” shopping is so easy and convenient, it can feel a bit “unreal.” With a multitude of merchandise at your fingertips, the ease of plugging in a few credit card numbers, and the lull of online discounts, it’s easily to get carried away. In order to avoid “clicking in” over your head, make sure online purchases are accounted for in your budget. You should have enough money in the budget to pay off all credit card balances in three months or less.

Shop Around; Online vendors offer a host of deals and discounts that, at a glance, seem extremely appealing. But before you click the “ok” button, be sure you know exactly what you will be charged. Reputable Web marketers such as Amazon.com and e-Toys will let you see your total, including tax and shipping, before you “check out.” Read all information carefully in order to avoid surprise fees or shipping charges on your bill.

Know the Web Store’s Return Policy; Most shoppers want to know a retail store’s return policy before they purchase a gift. Apply the same rules to online shopping so that you’re not stuck paying for items you don’t want, or that have been damaged.

Surf Early; Web marketers hype overnight delivery as a perk of shopping online. But speedy delivery has a hefty price. Shopping before the holiday rush means you can order goods at the economy-shipping rate. Also, when buying several gifts from the same Web site, try to order all items at the same time to avoid multiple shipping and surcharges.

For information on how to set up a workable spending plan, help with debt problems, housing counseling or other personal financial management issues, contact your local nonprofit CCCS at 800/208-CCCS (800/208-2227). CCCS professional counselors have helped tens of thousands of residents in southern New England to develop tailored financial solutions that help consumers to break the cycle of debt and enjoy long-term fiscal independence.

CCCS is an HUD-certified counseling agency, is accredited by the Council on Accreditation of Services for Families and Children, Inc., and is a member of the National Foundation for Consumer Credit (NFCC).